Xstrata pushes merger meeting back to September

Xstrata has adjourned its merger vote with Glencore until 7 September.

The massive mine originally announced that it has postponed a shareholder vote on the Glencore merger earlier this month.

At the time it said "Xstrata sought permission from the court to adjourn the meeting due to the proposed changes to the retention award element," the company said in a statement.

"As a consequence of these proposed changes [Xstrata has] to convene a new extraordinary general meeting."

The announcement came only a day after the Australian Competition and Consumer Commission approved that merger, saying it would not oppose the action.

The merger had previously appeared to be moving ahead smoothly until Qatar Holdings, which holds more than 10% of the miner, held out for a better deal.

Glencore, which holds more than a third of Xstrata, was put forth a scrip offer of 2.8 Glencore shares for every Xstrata share.

Qatar rejected this proposal and is demanding an increased offer of 3.25 Glencore shares.

Sheikh Hamad bin Jassim al-Thani, the Qatari prime minister and head of Qatar Holdings, told Reuters that "I cannot talk about it because it's under negotiation now, but what I can say is our position is firm.

"We look after Xstrata and all the shareholders of Xstrata, and we think it's good to merge the two companies. It will be positive for both sides, but at the right price."

Now the miner has set a firm date for the new vote, however "the terms of the merger remained otherwise unchanged," it said in a statement yesterday.

Following the merger's approval from the ACCC "the review process is ongoing in both China and South Africa," Xstrata said.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.