Davis earns £5.5m profit on Xstrata shares

[miningmx.com] – SHAREHOLDERS voting on the merger of Glencore and Xstrata may have denied Xstrata CEO, Mick Davis, a big ticket retention bonus, but the South African executive was able to cash in after the merger nonetheless.

Davis sold $10.7m in Xstrata options that were due for expiry in February. The sale was equal to 661,590 shares priced at £10.22 ($16.30) each on November 27, said Bloomberg News, citing an Xstrata announcement.

Davis was awarded the shares for £1.82 apiece under an option plan, granted in February 2003, Xstrata said. As a result, he booked a profit of £5.5m from the sale before UK tax.

The trigger for the sale of shares was European Commission support for the merger of Xstrata and Glencore. Dealing in shares were prohibited until this point.

“This prohibited period ended following the conclusion of the Xstrata shareholder meetings on Tuesday, 20 November 2012 and the announcement by the European Commission on Thursday, 22 November 2012 that it has cleared under the EU Merger Regulation the proposed acquisition of Xstrata by Glencore,’ Xstrata said in the filing.