Glencore chief executive Ivan Glasenberg’s sweetened offer for miner Xstrata will also see him take the top job at the giant new company.
The Swiss commodities trader called off votes on the merger last week as it became apparent that some of Xstrata’s largest shareholders, led by Qatar’s sovereign wealth fund, would reject the offer of 2.8 shares in the new company for each Xstrata share they owned.
In a deal brokered last week by former prime minister Tony Blair for a reported fee of $1 million (about £625,000), Glencore is now offering more shares to Xstrata investors but is no longer prepared to hand over the top roles to its management.
Xstrata investors are now being offered 3.05 shares, which appears to have mollified the rebels.
The mining firm’s chief executive, Mick Davis, had previously been lined up to take the hot seat at the combined company, which will have more than 100,000 employees.
Under the new terms, Glasenberg will become chief executive instead, while Davis could be ousted altogether. He would receive a pay-off of at least £8m, plus up to £30m in shares.
Glencore is also reported to be insisting that a controversial £172m “golden handcuffs” payment to ensure Xstrata’s management stays at the new business be reviewed.
With Xstrata’s shares moving higher on the back of the new deal, investors were reported to be pressuring the board to accept the new terms.