30% premium can clinch deal

Xstrata would need to offer a 30 percent premium for a "friendly" takeover of Anglo American, a analyst said yesterday. The nil-premium, £25.2 billion (R308bn) deal proposed by Xstrata probably was not possible, he said. A 30 percent premium might be high enough, he said but still, such a premium "would be a negative for Xstrata shareholders" and Xstrata would instead likely walk away, get "stronger" and make another offer for Anglo next year. Xstrata must make a formal bid by October 20.