Glencore Makes Final push for Xstrata

Glencore International PLC (LON:GLEN) officially put its revised offer for Xstrata PLC (LON:XTA) to the miner’s board and shareholders, seeking to win their approval for new terms and keep the historic merger deal from turning hostile or collapsing.

Glencore on Monday solidified and expanded on an informal offer it had made to Xstrata’s board Friday, in a last-ditch effort to save the deal. The world’s biggest commodities trader said that according to its new plan, Xstrata Chief Executive Mick Davis would lead the combined company for six months, before giving way to Glencore CEO Ivan Glasenberg, and that Xstrata chairman John Bond would be permanent chairman. On Friday, Glencore had said only that Mr. Glasenberg would be CEO, rolling back a prior plan for Mr. Davis to take that job.

Switzerland-based Glencore confirmed other aspects of its new plan, including a price of 3.05 Glencore shares for every Xstrata share, up from a prior ratio of 2.8. But Glencore added Monday that it will not raise its offer further.
The move represents the latest chapter in a years-long effort on the part of Mr. Glasenberg to complete a full-takeover of Xstrata, which Glencore helped build into the mining juggernaut that it is today and in which it already owns a 34% stake.

Market reaction to the deal suggests that investors are increasingly confident it will happen. On Monday, Xstrata shares rose 2.4% in midday in London to 1,038.5 pence, and Glencore shares fell just over 1% to 373.86 pence. That puts the closely watched deal ratio at 2.78, nearer to the new offer than it was Friday.
source: http://www.marketwatch.com/story/glencore-confirms-increased-xstrata-proposal-2012-09-10-84853910?reflink=MW_news_stmp