LONDON/ZUG, Switzerland – Trader Glencore has raised its offer for miner Xstrata in a dramatic 11th-hour attempt to rescue one of the sector's largest ever deals from collapse after months of opposition from rival shareholder Qatar. Glencore Chief Executive Ivan Glasenberg lived up to his reputation as an unpredictable dealmaker, with overnight talks with Qatar that unlocked an impasse between Xstrata's top two investors. Dawn telephone calls Friday put the now $36 billion deal back on the table, sources familiar with the deal said. Glencore, which has a 34 percent stake in Xstrata already, is proposing an offer of 3.05 new shares for every Xstrata share it does not already own, up from 2.8. Qatar, Xstrata's second largest shareholder, demanded a ratio of 3.25 in June, though in recent days sources involved in the deal had said the Gulf state's sovereign wealth fund could settle for a compromise. “Ivan showed what everyone suspected - he needs this deal more than anyone else," said one source familiar with the deal. The new proposal released by Xstrata, however, makes other changes, including placing Glasenberg as chief executive of the new group instead of Xstrata's Mick Davis, a veteran manager with a strong operating record who would have taken the helm under the original deal. The role for Davis and his team, if any, in the future company is unclear under Friday's proposal, and the change could draw an end to the South African manager's career at Xstrata after a decade at the top. Looking tense and tired at Xstrata's shareholder meeting, Davis declined to comment on his plans. Glencore also said it might change the offer's structure, from a complex arrangement that requires 75 percent approval of non-Glencore shareholders, to a straightforward takeover requiring a simple majority of Xstrata shares. But the proposals, still not a firm offer from Glencore, were far from certain on Friday to pull the deal over the line. Xstrata directors registered their objections and several sources said it was not clear Qatar backed either the management changes or the shift to a simple takeover. – Reuters
