Xstrata Takes Anglo Merger Proposal To Holders


LONDON -(Dow Jones)- Xstrata PLC (XTA.LN) Wednesday said a combination with
Anglo American PLC (AAUK) would create savings of more than $1 billion per year
as the Anglo-Swiss miner looked to take its argument for a merger directly to
shareholders.


"It must surely be in the interests of both companies' shareholders for
Xstrata and Anglo American to work together to test in more detail the
attractive proposition we have put to the Anglo American Board," Chief Executive
Mick Davis said in a statement. "We will continue to seek to engage with Anglo
American's board and management to investigate the value that would accrue to
their shareholders and to ours from a combination," he added.


Xstrata did not offer any sweetener, but instead Davis said he was "sure"
Anglo's board would eventually seek to examine a deal.


U.K.-based Anglo American Monday rejected Xstrata's proposal for an all-share
"merger of equals," saying such a deal is strategically unattractive and the
terms are "totally unacceptable."


The combination would create the world's third biggest miner by market value -
about GBP40 billion - as well as the biggest producer of thermal coal, platinum
and ferrochrome, and one of the world's top producers of copper, nickel, coking
coal and iron ore.