Glencore delays Xstrata mega-merger vote:
Speculation Ivan Glasenberg will increase offer for Xstrata after shareholder vote postponed due to 'overnight developments'
Glencore looked poised to increase its offer for Xstrata on Friday morning, in a fresh twist to the commodities mega-merger, after adjourning the shareholder vote on the multibillion dollar deal due to "overnight developments".
Glencore requested a temporary suspension to trading in its shares, but they were still changing hands at 9.30am, down 1.6% at 386p. Xstrata shares were 5.9% higher at £10.36.
Xstrata was still holding its own general meeting at 10am, when it had been due to vote on the deal, although it is thought that meeting too would be adjourned. Both companies declined to comment.
Glencore chief executive Ivan Glasenberg, who personally holds almost 16% of Glencore, has been pushing for a merger with Xstrata for five years.
Glencore listed on the stock market last year specifically to gain the firepower to do bigger deals, and announced in February it would bid for the Xstrata stock it does not already own to create a mining and trading powerhouse with a market capitalisation of about $66bn (£41.8bn).
The two companies agreed the deal, that would see Glencore offer 2.8 new shares for every share in Xstrata. But Xstrata shareholder Qatar Holdings appeared to scupper their plans when it confirmed last week that it would vote against the deal. The Qatari sovereign wealth fund, which has aggressively built a 12% stake in Xstrata, surprised the market in June by asking Glencore to raise its offer to 3.25 shares.
Glencore looked poised to increase its offer for Xstrata on Friday morning, in a fresh twist to the commodities mega-merger, after adjourning the shareholder vote on the multibillion dollar deal due to "overnight developments".
Glencore requested a temporary suspension to trading in its shares, but they were still changing hands at 9.30am, down 1.6% at 386p. Xstrata shares were 5.9% higher at £10.36.
Xstrata was still holding its own general meeting at 10am, when it had been due to vote on the deal, although it is thought that meeting too would be adjourned. Both companies declined to comment.
Glencore chief executive Ivan Glasenberg, who personally holds almost 16% of Glencore, has been pushing for a merger with Xstrata for five years.
Glencore listed on the stock market last year specifically to gain the firepower to do bigger deals, and announced in February it would bid for the Xstrata stock it does not already own to create a mining and trading powerhouse with a market capitalisation of about $66bn (£41.8bn).
The two companies agreed the deal, that would see Glencore offer 2.8 new shares for every share in Xstrata. But Xstrata shareholder Qatar Holdings appeared to scupper their plans when it confirmed last week that it would vote against the deal. The Qatari sovereign wealth fund, which has aggressively built a 12% stake in Xstrata, surprised the market in June by asking Glencore to raise its offer to 3.25 shares.
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