1% Xstrata gets Anglo deadline
Brendan Ryan | Fri, 02 Oct 2009 13:26[miningmx.com] -- ANGLO American has confirmed invoking the “put up or shut up” requirement on Xstrata, following Xstrata’s proposal for a “merger of equals” of the two resource heavyweights. Anglo said in a statement released on Friday it noted the announcement by the Takeover Panel executive that Xstrata must either commit to a firm intention to make an offer for Anglo by 5pm on October 20, or say that it does not intend to do so. If Xstrata announces it does not intend making an offer, it will be restricted from further moves on Anglo for six months. Xstrata spokesperson Claire Divver said: “We note today’s [Friday’s] announcement by the Takeover Panel, and will respond by the deadline of October 20.” Anglo chairman John Parker said: “Having reviewed with management and advisers the value creation potential at Anglo American relative to Xstrata’s merger proposal and having met our shareholders in the UK, South Africa and USA, we have reaffirmed our conclusion that Xstrata’s proposal is not in the interests of our shareholders. “We have made our position on Xstrata’s proposal very clear and we welcome the panel’s decision today.” Xstrata CEO Mick Davis first made the merger proposal on June17 in a letter to the Anglo board; the development became public a few days later. Anglo’s attitude until now has been to ignore Xstrata, and to imply that it was not worth the trouble of calling for the “put up or shut up” requirement. A number of market observers have expressed surprise that Anglo is doing it at this late stage, although the timing was almost certainly affected by the appointment of new chairman John Parker. Anglo spokesman James Wyatt-Tilby said: “We have always said this was something we would look at as one of the options open to us.” RBC Capital Markets analyst Des Kilalea said: “I think John Parker got the message from Anglo’s shareholders that they are not interested in this deal, and they want Anglo to get it out of the way and get on with normal business.”
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