The Telegraph reports Chairman John Bond and CEO Mick Davis risk being voted off the board of Xstrata after being accused of negotiating “a cosy stitch-up” with Glencore without consulting them about negotiating reasonably limited offer as opposed to a merger of equals.
The Telegraph also said that Davis could collect around ￡11 million ($17 million) on account of change of control clauses in the contract:
“Richard Buxton, head of UK equities at Schroders, said he previously remind Sir John of his duty to everyone shareholders: “This could be the biggest test of independent directorship that London has seen.
He said he would “happily vote Mick out” adding: “We won’t be stitched on top of some cosy deal that leaves shareholders up front.”
Another top five shareholder, who asked to not be named, added: “Xstrata should be under no delusions - it might run without Mick Davis with the helm. No one is that essential to a company.”
Purchasing reports of any possible blocking on the deal by Xstrata shareholders if your Swiss commodities trader would not offer a “substantial” premium for taking control. Via Bloomberg:
Xstrata’s growth prospects in the next 10 years are above Glencore’s, the newspaper said, citing Richard Buxton, head of U.K. equities at Schroders Plc. (SDR)
Others have a very different view of ‘Big Mick’ Davis.
Bloomberg reports Xstrata, quarry plant machinery today the world’s biggest exporter of thermal coal and the fourth-largest copper producer, under Davis proceeded to go from which has a fewer than 2,500 employees with a workforce exceeding 70,000 in 20 countries.
“The legacy is building among the premier, largest metals and mining companies on earth, and having done this in a versatile manner,” said Jeff Largey, a mining analyst at Macquarie Group Ltd. inside london.
Even before building up Xstrata through a compilation of billion dollar transactions, Davis was a formidable dealmaker who with fellow South African Brian Gilbertson created Billiton. Davis left for Xstrata after Billiton was sold to BHP in 2001:
“He’s very regarding it,” said Michael Rawlinson, a former JPMorgan Chase & Co. investment banker that's now a mining analyst at Liberum Capital Ltd. london. When shareholders back Xstrata, “they are type of backing Mick too, for the extent that the Xstrata without Mick is less valid.” the stone crusher machinery http://www.stone-crusher.org/stone-crusher.html
Glencore’s Ivan Glasenberg and Davis both cut their teeth in South Africa’s coal industry within the 1980s and are also keen sportsmen (Davis is actually a cricket fanatic), known for 70-hour workweeks and are ferocious dealmakers. Their close relationship are tense before.
The Australian does not mince its words in regards to the highly competitive Glasenberg:
[Gold Processing Plant]
Mining industry legend has it that whenever Glencore’s Ivan Glasenberg does an agreement with you, you can be assured about 2 things: he will adhere to it and it will be considered a bad deal for you personally.
His legendary deal-making skill explain why they are worth some $5 billion and his awesome old schooldays chum, Xstrata’s Mick Davis, is leery about accepting his proposed takeover.
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