Xstrata Board to Push for Glencore Deal: Report
LONDON (TheStreet) -- Xstrata PLC's (XTA:London) board is set to recommend that shareholders vote in favor of the sweetened takeover offer from Glencore International (GLEN:London) and approve a new retention package, according to a published media report.
The board is expected to make the recommendation Monday morning in London, The Wall Street Journal reported, citing anonymous sources familiar with the matter.
The takeover was first announced in February, but it has faced various hurdles, including major shareholder Qatar Holding's resistance to an earlier offer amount and shareholder opposition to large retention packages for Xstrata executives.
Earlier this month, commodities trader Glencore raised its offer to 3.05 of its shares for each Xstrata share. A previous offer had been for 2.8 shares.The board of Xstrata, a mining company, is expected to propose changes to the voting structure that will allow shareholders to express a range of opinions on the retention packages without scuttling the deal, the Journal reported.
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