Tuesday June 23, 12:55 PM
Xstrata "disappointed" by Anglo American rebuff
GENEVA (AFP) - Swiss mining group Xstrata (LSE: XTA.L - news) said Tuesday it was "disappointed" and "surprised" by rival Anglo American (LSE: AAL.L - news) 's rejection of its merger bid.
"We are disappointed by Anglo American's hasty rejection of our proposal for a merger of equals," Xstrata said in a statement.
"We are also surprised that Anglo American's board of directors did not think it useful to engage in discussions with Xstrata" given the "considerable value" that the proposed tie-up would create for shareholders in both companies.
London-based Anglo American on Monday maintained that "the strategic case for the combination is unattractive for Anglo American shareholders.
"Irrespective of this lack of strategic merit, the terms proposed by Xstrata were totally unacceptable."
The potential tie-up between Xstrata and Anglo American, a British-South African enterprise, was the latest sign of consolidation pressure in the mining sector after the collapse of a deal by Rio Tinto (LSE: RIO.L - news) with China.
A merger would have created a company worth more than Rio Tinto, which earlier this month cancelled a controversial tie-up with China's Chinalco in favour of a joint venture with the world's biggest miner BHP Billiton (LSE: BLT.L - news) .
Anglo American has a market worth of 35 billion dollars (25 billion euros) and Xstrata 33 billion dollars.
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
