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Anglo-American’s new boss puts boot into Xstrata bid
20.07.09
The newly appointed chairman of Anglo-American has come out shooting over rival miner Xstrata's hostile plans to force a £40 billion merger between the two.
Sir John Parker accused Xstrata of a spreadsheet-based deal strategy.
Parker said Xstrata's proposals do not make sense from Anglo's perspective.
“The board have obviously evaluated this proposition very carefully,” said Parker in an interview published on Anglo's website. “Frankly, as far as I'm concerned, there's a clear value gap. What looks good on a spreadsheet has also got to be examined in the light of cultural differences and management philosophy.”
Xstrata has talked of a nil-premium, all-share merger offering no extra money for those Anglo shareholders who might wish to exit for cash.
Of the speculation surrounding the future of much-criticised Anglo chief executive Cynthia Carroll, Parker said: “I'm very happy with the plans that Cynthia Carroll as chief executive has outlined to me for cost reductions and value creation.”
“She's met some criticism, but you know you can't make an omelette without breaking eggs.”
