Xstrata Plc is set to recommend shareholders vote in favour of a £20.5 billion (Dh121.68 billion or $33 billion) sweetened takeover offer by Glencore International Plc after revising the voting structure and winning assurances it will have a majority of the board.
Xstrata, the largest exporter of coal used by power stations, will make changes to secure the loyalty of top managers and balance investor demands, in order to create the world’s fourth-largest mining company, according to a person familiar with the deal, who asked not to be identified as the talks are private.
Glencore earlier this month raised its offer to 3.05 of its shares for each one in Xstrata from 2.8, after investors said the original bid undervalued the Swiss mining company. The Baar, Switzerland-based commodities trader invited Xstrata to propose changes to the bonus package to ensure shareholder backing for the year’s biggest takeover.
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