Global commodity trader Glencore International PLC, which was within hours of seeing its proposed $80 billion purchase of giant Anglo-Swiss miner Xstrata PLC rejected by shareholders, early Friday raised the amount it is willing to pay, according to a published report.
The Financial Times said Switzerland-based Glencore, which had offered 2.8 shares for every Xstrata share, has increased that ratio to 3.05, a nearly 9 percent hike. Based on the value of the companies' shares at the close of business Thursday, the new offer marks a 27 percent increase.
The move, which comes hours before a shareholder meeting that appeared set to reject the Glencore offer, is apparently aimed at meeting objections of Qatar Holding LLC, Xstrata's second-largest shareholder, the the 2.8 ratio was too low. The sovereign wealth fund, which holds 12 percent of the Zug, Switzerland-based miner, has been demanding a ratio of 3.25 shares for each Xstrata share.
Shares of Glencore, the world's largest commodity trader, tumbled 4.3 percent Friday while Xstrata shares jumped nearly 8 percent. Both securities are listed on the London Stock Exchange.
Mike Obel works as Senior Editor, Copy Chief. Before that he was Markets Editor, assigning, editing and writing about business, markets, finance and economics. Before coming...