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Sun 23 Sep 2012 11:09 AM

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Xstrata boss says will not stand in way of Glencore deal

Sir John Bond says will not get in way of US$80bn merger amid calls for his departure

Xstrata boss says will not stand in way of Glencore deal
A logo of the mining group Xstrata is seen on September 7, 2012 at its headquarters in Zug (AFP/Getty Images)

Xstrata chairman Sir John
Bond has said he will not stand in the way of Glencore's US$80bn merger amid
calls for his departure from some shareholders, the UK's The Telegraph reported.

Bond is believed to have
told Glencore’s board that he will do whatever is in the best interest of
investors, the newspaper said quoting an unnamed shareholder. 

The news follows days after
Xstrata delayed its response to the takeover as it seeks to resolve issues over
management and the board at the proposed new company. The deadline has been extended
from 24 September to 1 October, Xstrata said in a statement.

Xstrata said the delay would
“enable Xstrata’s independent non-executive directors to take full account of
feedback from consultation with key Xstrata shareholders”.

Generous retention
packages designed to keep Xstrata’s senior managers in place after the deal
remain a concern, as does the decision by Ivan Glasenberg, Glencore’s CEO, to install himself as the boss of the combined company.

The delay is the latest
turn in the multibillion dollar merger, which has faced a series of
stumbling blocks since it was first announced in February.

The deal was on the verge of
collapse two weeks ago after shareholders, including Qatar Holding which owns a 12 percent stake in Xstrata, said
it would vote against it unless Glencore improved terms.

The world’s largest
commodities trader on 7 September boosted the price to 3.05 of its shares for each
Xstrata share from 2.8. The firm also proposed Glasenberg run the combined
company following a six-month stint for Xstrata CEO Mick Davis.

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