Seeking Alpha

Xstrata's board is reportedly set to recommend Glencore's sweetened $80B merger bid, which...

Xstrata's board is reportedly set to recommend Glencore's sweetened $80B merger bid, which includes a controversial £140M retention package for Xstrata's senior execs and gives it a majority of directors on the combined board. Crucially, major Xstrata shareholder Qatar will back the new offer and the retention package. The deadline for the company to give its recommendation is tomorrow.
Comments (1)
  • Dr. V
    , contributor
    Comments (1179) | Send Message
     
    I would exercise caution in the way you are reporting this, you make it sound academic at this point.

     

    FACTS:

     

    1) This is only a recommendation, and Xstrata is "reportedly" set to recommend the bid which bends shareholders over the table in the long run.

     

    2) Even IF the terms are accepted, Glencore still has to file its long-awaited antitrust notification with the European Union, NOTHING is guaranteed, and the filing will quickly come under scrutiny for obvious reasons.

     

    NOTE:
    Do you really believe BHP/Rio won't counter? The same EU Anti-Trust & Competition Laws that would allow "Glenstrata", MUST also allow BHP/Rio, and we all know (BHP/Rio) ARE THE SECTOR.

     

    FOOD FOR THOUGH:
    If you think FB went wrong fast, (as we warned), look for "Glenstrata" to spark the correction everyone has been fearing, as far too many "junior analysts" who haven't yet cut their teeth,are taking this deal for granted. Remember that when Glasenberg tries to pull an "Ichan" on you, also a concern at recent meetings.

     

    DISCLAIMER:
    I do not have ANY position in either Glencore or Xstrata,
    1 Oct 2012, 04:14 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|