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Come clean on Anglo savings, Xstrata is told
30.06.09
The battle for Anglo American appears to be turning nasty.
The Takeover Panel has been called in and told Xstrata to clarify how much money it thinks it can save in its £40 billion merger plan with its mining giant rival.
Xstrata unveiled plans earlier this month for the nil-premium merger with Anglo-American.
It said it believed a merged company could save $1 billion a year in costs. It added those savings could be achieved at a one-off cost of $500 million taken over two years.
However, after some analysts said that they reckoned the annual savings could total as much as $1.7 billion, the Takeover Panel has told Xstrata that it must clarify its costings.
There are whispers that analysts may have received briefings over and above what Xstrata had previously announced to the stock market.
Xstrata today reiterated its figures, saying they had been verified and reported on by accountant Ernst & Young, investment bank Deutsche Bank and stockbroker JPMorgan Cazenove.
