Talking Gaga

5 March 2012 By Chris Hughes

The commodity trader’s CEO, Ivan Glasenberg, has said the deal’s terms are fair and questioned why he should pay a higher premium for miner Xstrata. It’s easy to see why he is acting like he holds all the cards. But in reality, his poker face isn’t that convincing.

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Commodities trader Glencore reasserted that the terms of its proposed all-share merger with miner Xstrata were fair and defended the premium on offer, in spite of calls by the latter’s shareholders for a sweetener.
“This is a merger of equals. Xstrata have got most of the senior jobs. Most previous mergers of equals were done at a ratio of equals - this deal … has been done at a premium,” Glencore Chief Executive Ivan Glasenberg told Reuters. “We believe it is a fair deal, fair to all shareholders.”
Glasenberg and his Xstrata counterpart Mick Davis are due to embark on a joint roadshow in April.
Shares in Glencore fell 3.96 percent and Xstrata fell 4.93 percent on March 5 after concerns about a slowdown in China prompted selling across mining and commodities.

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