Xstrata pushes bid to wed Anglo

SWISS-BASEDmining group Xstrata has put more pressure on takeover target Anglo American to come to the negotiating table by releasing details of its proposal, including cost savings of R8billion.

SWISS-BASEDmining group Xstrata has put more pressure on takeover target Anglo American to come to the negotiating table by releasing details of its proposal, including cost savings of R8billion.

Anglo on Monday rejected a proposed "merger of equals" floated by Xstrata one day earlier, saying the idea lacked strategic rationale and the terms were "totally unacceptable".

"We remain convinced of the undeniable logic for a merger of equals between Anglo American and Xstrata," Xstrata chief executive Mick Davis said yesterday.

"I feel sure that, in time, Anglo American's board will want to examine comprehensively the merits of this transaction for its shareholders."

Xstrata said it estimated bringing the two firms together could result in over R8billion of pre-tax synergies by the third full year after completion.

A merger would create a group worth $67billion based on Tuesday's closing share prices.

The group would have added bulk to compete against sector number one BHP Billiton which is valued at $138billion and Rio Tinto, at $68billion.- Reuters

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