socialmedian: Xstrata merger 'dead and buried' says Anglo American

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Xstrata merger 'dead and buried' says Anglo American

Source: The Guardian

Oct 15, 2009

Summary

• Xstrata abandons proposal before Takeover Panel deadline
• Anglo American biggest FTSE faller, dropping 3.7%

Anglo American has declared the idea of a merger with Xstrata "dead and buried" after its rival decided not to launch a bid.

Xstrata abandoned the proposal earlier today, five days before a put-up-or-shut-up deadline imposed by the Takeover Panel. This ends a four-month period in which Xstrata tried, without success, to persuade Anglo of the merits of a merger of equals.

Anglo's chairman, Sir John Parker, pledged to derive "additional value" from Anglo's asset base, which include mines producing platinum, diamond, and base metals like copper and nickel.

Parker was hired in July, just three weeks after Xstrata's approach came to light. Anglo said today that his appointment had brought "renewed focus on delivering value for Anglo American's shareholders".

"Today's announcement was inevitable because Anglo's shareholders rejected both the poor strategic logic and underwhelming valuation of Xstrata's proposal," the Anglo spokesman said. "The proposed 50:50 mer

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