The £44bn mega-merger of miner Xstrata and commodity trader Glencore is today set to be backed by shareholders but they will refuse to sign off “golden handcuffs” for Xstrata’s management.
Glencore’s shareholders vote first on the deal, a poll which is expected to proceed without incident given its shareholders are, in the main, its former and present staff.
Then, after a complex voting process drawn out over three hours, Xstrata should announce at around 4pm that the deal has its own shareholders’ backing.
Xstrata shares were yesterday trading at a near-record ratio of 2.9 times the price of Glencore shares, close to the deal offer ratio of 3.05, which signalled market confidence the merger will take place.
None the less, after Qatar’s sovereign wealth fund said it would abstain from the Xstrata vote on paying £140m to 70 staff in retention payments, insiders are certain that the plan to pay out those bonuses will be voted down.
With 12pc of Xstrata, Qatar is its biggest shareholder after Glencore, which cannot vote its stake.