LONDON (Reuters) - Commodities trader Glencore (GLEN.L), which has agreed to a $37 billion takeover of miner Xstrata XTA.L, said on Monday the deal was “fair” for all shareholders at current levels, brushing aside hopes of a hint the offer could be sweetened.
“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,” Chief Executive Ivan Glasenberg told Reuters.
“We believe it is a fair deal, fair to all shareholders.”
Glencore, which will now begin roadshows to promote the deal to its own and to Xstrata investors, is offering 2.8 new shares for every Xstrata share it does not already own. Several key Xstrata shareholders have said they will not accept the deal at the current level.
Glasenberg said 2012 had started “very strongly” for Glencore’s trading arm across all divisions, adding its key growth area of iron ore was looking “a lot stronger” in 2012.
Reporting by Clara Ferreira-Marques; Editing by Myles Neligan