GENEVA (AP) — Commodities trader Glencore International PLC says it is prepared to raise its offer to salvage a proposed $80 billion merger between the Swiss-based company and Xstrata, the giant mining company.
Xstrata announced Friday that it had received a proposal from Glencore to offer 3.05 new shares for each Xstrata share, up from the existing offer of 2.8 shares. That offer has been resisted by Qatar Holding, a major Xstrata shareholder.
Xstrata said Glencore also proposed that its chief executive, Ivan Glasenberg, would become CEO of the combined companies. The earlier plan was for Xstrata CEO Mick Davis to take that role in the combined company.
Glencore earlier adjourned a shareholder meeting that had been scheduled to approve the merger on Friday after its chairman reportedly told investors that there had been some developments overnight.
Glencore, the world's largest publicly traded supplier of raw materials such as oil, copper and wheat, had said earlier that it would rather walk away from its proposed merger than overpay.
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