The chief executive of commodities titan Glencore International PLC (GLEN.LN) Monday dismissed calls for a higher premium in its proposed merger of equals with Xstrata PLC (XTA.LN), describing the deal as fair, and said he would now go on a roadtrip to convince shareholders about the deal's merits.

Glencore has agreed to issue 2.8 of its shares to Xstrata shareholders for every Xstrata share held, as it seeks to create a commodities juggernaut with a market capitalization, at the time of announcement, of around $90 billion and assets in oil, base metals, precious metals, shipping and agriculture. Four Xstrata shareholders, accounting for nearly 5% of the company's total outstanding capital, have said this isn't sufficient. About 16.4% of Xstrata's voting shareholders need reject the deal to block it.

"We believe it is a very fair price," Glencore's chief executive Ivan Glasenberg told Dow Jones Newswires in an interview, noting that Xstrata's shareholders are set to receive an attractive premium--and many of the combined company's top management jobs--marking a departure from the traditional merger-of-equals structure where premiums tend to be minimal.

Glasenberg declined to comment on whether there was scope to increase the share swap ratio. A Dow Jones poll of seven analysts shows that Glencore will likely have to bump up the ratio to 3.0 to secure a favorable vote from Xstrata's shareholders.

He said that Glencore's management will now go on a roadshow, to meet with Xstrata shareholders who don't own Glencore shares and tackle two misconceptions about Glencore's business--the size and quality of its mining assets and the way its marketing business operates.

"Our job now is to visit the Xstrata shareholders and try to convince them that the paper they are getting is good paper," he said.

Glencore has a history of generating high return on equity from its low-cost, high-quality and long-life mines since it began its business 37 years ago and has never reported a loss in its marketing business, he said.

Glasenberg also dispelled investor concerns that clashes may arise from a new corporate structure, where he will become deputy CEO and Xstrata's Mick Davis will become CEO.

"I think is a perfect combination" Glasenberg said, noting that he will be responsible for trading activities while Davis will take care of industrial activities.

Glencore also Monday confirmed the details of last month's trading update in which it reported a 28% revenue rise to $186.2 billion, buoyed by strong prices and output from its industrial assets which more than offset lower profitability from its market activities where losses in the cotton market dented profits.

Net profit rose to $4.05 billion from $1.29 billion in 2010, prompting the company to declare its first full-year dividend, of $0.15 a share, since listing its shares publicly in May.

-By Alex MacDonald, Dow Jones Newswires; 44 20 7842 9328; alex.macdonald@dowjones.com

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