Fear-less

15 October 2009 By Una Galani Follow @ugalani

First Vale, then Lonmin, now Anglo American. Xstrata s dealjunkie CEO Mick Davis is wracking up a list of failed mining transactions. Withdrawing the weak approach for Anglo may be sensible, and the game for Lonmin isn t over yet. But Davis reputation is becoming less fearsome.

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Xstrata said it would not make a formal offer for rival Anglo American ahead of the deadline imposed by the UK Takeover Panel.

The mining group had been given until October 20 to either make a formal offer after Anglo rejected an approach in June for a merger of equals.

"Our decision not to proceed with an offer before the deadline imposed by the UK Takeover Panel reflects our disciplined approach to growth and our focus on the value proposition for Xstrata's shareholders in a merger," said Mick Davis, Xstrata's chief executive.

Xstrata will now be restricted from making a hostile offer for Anglo American for a period of six months, unless a third party intervenes.

Anglo American shares fell 3% to 2,241p.

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