LONDON Nov 20 Xstrata's shareholders
did not pass a first resolution that would have approved a $31
billion takeover by trader Glencore, subject to a controversial
retention package, as not enough investors heeded a
recommendation from the miner's board.
Only 67.8 percent of shareholders voted in favour of the
first of two resolutions on the tie-up - short of the necessary
75 percent threshold.
Shareholders, at a meeting in the Swiss town of Zug, are now
set to vote on a second resolution, deciding whether or not to
approve the deal without the "golden handcuffs" plan to retain
key Xstrata managers. This is expected to pass.
The retention plan itself will be voted on separately.
Earlier on Tuesday, Glencore shareholders overwhelmingly
backed the deal.