[miningmx.com] – GLENCORE and Qatar have been handed nearly two
months to hammer out a deal over the terms of a proposed $26bn takeover by the
Swiss-based trading company of Xstrata, the UK-listed miner.
This was after Xstrata announced today a shareholder meeting to vote on Glencore’s
offer had been adjourned to September 7. Xstrata also detailed fresh executive
retention packages. In cases such as that of Mick Davis, CEO of Xstrata and the
proposed CEO of the combined unit, such packages would turn wholly on share
options rather than a partial cash payout, as was previously proposed.
The Xstrata shareholder meeting was to have taken place on Thursday (July 12), but
has been delayed after Xstrata adjusted executive retention packages and amid
speculation the Qataris would not support Glencore’s offer.
The adjournment will allow for the European summer break as well as the London
Olympic Games to take place. During this period, the two companies will also publish
half-year results.
In terms of the incentive package offered to Davis, full vesting of the shares will
take place if savings of $300m, and above the $50m as outlined in potential
synergies from the combination of the two companies, is achieved after a two-year
period.
