Xstrata postpones response to Glencore merger bid

Swiss mining group Xstrata said Friday it would put off responding to a sweetened merger bid from commodities giant Glencore until October 1.

“The extension (of the reflection period) has been granted by the panel” in charge of overseeing the merger, Xstrata said, adding that its non-executive directors would give their answer at 7:00 am (0600 GMT) London time on October 1.

The company, which had initially been scheduled to respond to the proposal on Monday morning, said it had asked for the delay so it’s leadership could discuss the matter properly with it key shareholders.

The general assemblies of both Swiss companies had been set to approve the blockbuster merger at the beginning of September but the deal ran into major resistance from several Xstrata shareholders demanding better conditions.

Qatar Holding, which is wholly owned by Qatari’s sovereign wealth fund and is the single biggest shareholder in Xstrata with more than 12 percent of its shares, has led the opposition.

Since June, Qatar Holding has demanded a rate of 3.25 Glencore shares for one Xstrata share, while Glencore initially offered just 2.8 of its shares for each of its compatriot’s.

When Glencore on September 7 hiked its bid to 3.05 of its shares for each of Xstrata’s, Qatar Holding said it would reevaluate its position.