Xstrata's proposal not in interests of our shareholders: Anglo

JOHANNESBURG - A takeover of Anglo American by Xstrata would not be in the interests of the former’s stakeholders.

“Having reviewed with management and advisors the value creation potential at Anglo American relative to Xstrata’s merger proposal and having met our shareholders in the UK, South Africa and USA, we have reaffirmed our conclusion that Xstrata’s proposal is not in the interests of our shareholders,” Sir John Parker, chairman of Anglo American said in a statement on Friday.

His comments followed the announcement by the Takeover Panel Executive earlier on Friday that it had imposed a deadline of 5.00pm on October 20 2009, “by which time Xstrata must, unless the Takeover Panel Executive consents otherwise, either announce a firm intention to make an offer for Anglo American ... or announce that it does not intend to make an offer for Anglo American.”

If Xstrata announced that it did not intend to make an offer for Anglo American, Xstrata and any person acting in concert with it would be bound by the restrictions for six months from the date of such announcement.

On June 22, the Board of Anglo American unanimously rejected Xstrata’s proposal as not being in the best interests of its shareholders.

The Board stated that it considered the strategic case for the combination to be unattractive for Anglo American and, furthermore, the terms proposed by Xstrata to be totally unacceptable.

“Nothing since then has changed the Board’s view and the Board reiterates its emphatic rejection of Xstrata’s approach,” Anglo American said.

It added that by October 20 Xstrata would have had four months to either announce a formal offer or withdraw, and Anglo American believed it was in the interests of the Group and its shareholders that this “period of uncertainty” was brought to an end.

-Sapa