LONDON (ShareCast) - Mining giant Xstrata (LSE: XTA.L - news) was asked by the Takeover Panel on Tuesday to clarify the level of synergies
it sees from its proposed merger with
Anglo American (LSE: AAL.L - news) , after recent press comment suggested the savings could be bigger than originally specified.
Xstrata has reiterated its figure of $1bn per annum of pre-tax synergies by the third full year of the merger, as outlined in its 24 June statement.
Distancing itself from newspaper reports which quoted Xstrata’s advisors as saying the benefits could exceed $1bn p.a., Xstrata said the estimate is the only one that has been reported on by Xstrata and its advisors, Ernst & Young LLP, Deutsche Bank AG (Xetra: 514000 - news) ( London Branch) and JP Morgan Cazenove Limited. “Accordingly, any other published synergy estimate is not endorsed or supported by Xstrata,” the company said in a statement.
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