Mining group Xstrata put more pressure on takeover target Anglo American Plc to come to the negotiating table on Wednesday by releasing details of its proposal, including cost savings of $1 billion.
Anglo on Monday rejected a proposed merger of equals floated by Xstrata one day earlier, saying the idea lacked strategic rationale and the terms were totally unacceptable.
We remain convinced of the undeniable logic for a merger of equals between Anglo American and Xstrata, Xstrata Chief Executive Mick Davis said in a statement.
I feel sure that, in time, Anglo American's board will want to examine comprehensively the merits of this transaction for its shareholders.
Xstrata said it estimated bringing the two firms together could result in over $1 billion of pre-tax synergies by the third full year after completion.
A merger would create a group worth $67 billion based on Tuesday's closing share prices.
The group would have added bulk to compete against sector No. 1 BHP Billiton which is valued at $138 billion and Rio Tinto, at $68 billion.
A combination of the two firms would create the world's biggest producer of zinc, platinum, coal for power stations and ferrochrome and No. 2 in coal for steelmaking and copper.
(Reporting by Eric Onstad; editing by John Stonestreet)