Upping the ante

4 August 2009 By Una Galani Follow @ugalani

The Swiss miner is using its decent H1 results to reassert its credentials as a merger partner for Anglo American. Cost discipline and safety improvements suggest that anything Anglo can do, Xstrata can do better. But Xstrata will still need to pay a premium if it wants a deal.

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Xstrata on August 3 used the presentation of first half results to reiterate its commitment to a nilpremium merger of equals with Anglo American, its mining rival.

I continue to believe that it is in the best interests of Xstrata and Anglo American shareholders to examine the potential to create the value we have identified, Xstrata's chief executive Mick Davis said in a statement.

The Swiss domiciled made public its merger proposal on June 21. Anglo rejected the proposal the following day as wholly unacceptable, citing a lack of strategic logic in a combination of the two groups.

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