AP News

Xstrata board recommends Glencore merger

LONDON (AP) — The board of Anglo-Swiss mining company Xstrata PLC says it is recommending shareholders accept a merger deal with Swiss commodities trader Glencore PLC.

Xstrata said in a statement Monday that it was supporting the offer of 3.05 shares in the new firm for each Xstrata share.

If the deal is approved by shareholders, the merged company would be one of the world's biggest natural resources firms.

Glencore's previous offers had been resisted by Xstrata shareholders, including major stakeholder Qatar Holding. But Glencore improved its original offer of 2.8 shares last month.

The deal would see Glencore CEO Ivan Glasenberg take the top job in the merged company.

Xstrata says it has agreed to give shareholders a separate vote on bonuses for senior executives, a key sticking point to a deal.

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