The Wall Street Journal reports, “Shareholders in commodities giant Glencore International PLC on Tuesday voted overwhelmingly in favor of a merger with Anglo-Swiss miner Xstrata PLC, a deal that would create the world’s fourth-largest diversified mining company.” The merger requires the approval of Xstrata shareholders in a series of votes scheduled today. “Xstrata’s board has recommended that the deal be approved only with payments totaling more than £140 million pounds ($223 million) to around 70 of its managers, who will be responsible for running assets that will contribute more than 80 percent of the combined companies’ earnings,” according to the Journal. These payments have attracted opposition from some shareholders who say they are excessive and/or lack sufficient performance targets. To prevent this opposition from derailing the deal, Xstrata’s board decoupled the merger vote from approval of retention packages. As a result, Xstrata shareholders will cast three votes at today’s meeting in Switzerland.
Glencore shareholders approve Xstrata merger
Glencore International shareholders approved a merger with miner Xstrata.
November 20, 2012