Xstrata seeks merger with Anglo American

Anglo American, the mining and natural resources giant, was rehearsing its defence last night against a £41 billion merger approach from Xstrata, its Anglo-Swiss rival.

Anglo American confirmed a merger proposal from Xstrata but was markedly unenthusiastic, emphasising that the situation “is at a very preliminary stage and that there is no certainty that any transaction will be forthcoming”.

The Anglo American board is deliberating whether to enter talks with Xstrata, although it is understood to be opposed to a deal. However, the board is likely to be influenced significantly by shareholders, whom it began sounding out a few days ago.

The full story can be found at TheTimesOnline.