Glencore declares final bid offer as £21.8 billion to Xstrata

Written on:September 11, 2012
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Xstrata headquarters in Zug

Will Xstrata accept Glencore’s final terms?

Glencore’s chief executive Ivan Glasenberg put down his cards on display yesterday, as he made his final offer to mining company Xstrata of £21.8 billion ($35 billion), in an effort to gather as much support as possible for the Glencore – Xstrata merger.

With the revision in the bid from 2.8 of Glencore’s shares for every Xstrata share to 3.05 ratio, there is now an 80% probability of the merger to go through. Glencore presented the revised bid along with a condition which would see Xstrata CEO Mick Davis exit after six months, handing over the reins of the combined entity to Glasenberg, which scraps the earlier plan of the Xstrata head taking control of the top job.

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Stock market news Sept 10: Xstrata, Vedanta Resources, BP

Written on:September 10, 2012
Stock quotation screen

This morning the FTSE 100 was trading within a narrow range with just 20 points between the intraday high and low, as investors continued to remain cautious ahead of another busy week on the markets. UK stocks continued a downward trend as drugmakers and tobacco firms added pressure but mining firms did well. Chinese data raised economic-stimulus hopes.

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Thomas Cook, easyJet ink holiday package deal

Written on:September 10, 2012
easyJet flight

Tormented British travel agency Thomas Cook has signed a deal with budget airline easyJet to book many seats on flights run by easyJet as part of its package holidays for next summer, the Sunday Times reported. The alliance, which is expected to be announced sometime this week, will include 80,000 trips, representing 3% of Thomas Cook’s capacity. The UK’s second biggest travel company was recently forced to turn to banks…

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Virgin Atlantic Airways chief executive Steve Rigdway steps down

Written on:September 10, 2012
Steve Rigdway

Virgin Atlantic Airways has announced the departure of its chief executive Steve Rigdway, who had spent 11 years leading Virgin Atlantic, and bringing a closure to a 23-year association with Virgin Atlantic. The Richard Branson-owned company disclosed that Ridgway had spilled his plans of departure with Branson at the beginning of the year and would now help Virgin Atlantic to hunt for his successor. Sir Richard Branson has been hit…

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Glencore revised bid ousts Mick Davis from CEO role of merged entity

Written on:September 10, 2012
Glencore sign board

Glencore is leaving no stone unturned to woo Xstrata’s investors and shareholders after it received severe criticism from them over aggressive revision of the deal which said that the offer would be increased to 3.05 ratio if Ivan Glasenberg, Glencore’s chief, would be made the head of the combined entity, instead of Xstrata chief Mick Davis. Glencore also proposed to retain Sir John Bond as the chairman of the combined…

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European Central Bank initiates OMT scheme to offer safety net to Euro

Written on:September 7, 2012
Euro

The crisis of high borrowing costs and debt difficulties, being experienced by limping Eurozone nations, has led to the European Central Bank (ECB) initiating a possibly unrestricted ‘bond-buying programme’ to decrease the Eurozone debt dilemma. This measure would, as per ECB’s President Mario Draghi, enable to address the baseless worries of financiers, who are apprehensive about Euro’s recovery. The programme intends to give a safety net to the Euro and…

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Glencore revises Xstrata merger deal terms, negotiates with Qatar

Written on:September 7, 2012
Glencore sign board

Commodities giant Glencore has finally agreed to raise the offer it made to miner Xstrata for the £46 billion merger to go through, raising the offer from 2.8 of its own shares for every Xstrata share held to 3.05. Glencore’s revision of the offer comes after Qatar Holdings, which holds 12% stake in Xstrata, gave an open statement regarding its disfavour for the merger deal on the current terms. Under…

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Morrisons plans to open 20 fresh format convenience stores in the UK

Written on:September 7, 2012
Morrisons supermarket

Supermarket chain Morrisons has rubbished rumours that it is seeking new pastures and abandoning its core customer base with the announcement of new convenience stores across the UK branded as M. Morrisons is also expanding its online service offerings with Morrisons Cellar wine service, in direct competition to Majestic Wine, marking its entry into e-commerce for the first time. Morrisons plans to launch 20 M Local stores by the end…

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European Central Bank leaves interest rate undisturbed at 0.75%

Written on:September 6, 2012
Mario Draghi

As he prepares to launch a bond-buying plan to save the euro, European Central Bank’s President Mario Draghi has announced today that interest rates will not be cut, leaving the benchmark rate at 0.75%. Draghi’s bond-buying plan involves the ECB buying short-dated bonds on secondary market of countries that seek bailout from Europe’s rescue funds to buy their debt on the primary market, which would require them to agree upon…

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Stock market news Sept 6: Glencore, Barclays, IAG and more

Written on:September 6, 2012
Angela Merkel

Today marks an important day for the stock market as the European Central Bank’s (ECB) monetary policy meeting that is scheduled to take place during the course of the day could decide the fate of bond-buying scheme. German Chancellor Angela Merkel has indicated that she is likely to accept temporary ECB bond buying. Keeping the hope alive, the FTSE 100 is likely to open on an optimistic note, with 15…

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