The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Glenxstra proposal comes through, one dissent likely, Facebook gets one dissent

Cover of the Autumn/Winter 2007 issue of Dissent

Image via Wikipedia

Even as we discussed the possible deal terms, the announcement today came exactly as the deal was drawn yesterday equating 2.8 Glencore shares to 1 Xstrata share, Glencore gaining 56.8% ownership if the shareholders approve the deal. that will add up the market caps of both companies at just under half the size of BHP Billiton and Xstrata CEPO Mick Davies coming on board along with his planned $40 bln in Capital expenditure to grow the company

While Glenxstra gets one dissenting shreholder, Standard Life only has a 2% stake and needs support from another 15% holdings on its side to block the deal. The other dissenting shareholder Schroeder’s also has a minor stake. The investors object to the throwaway pricing which will not give them good power from the 2.8 Glencore shares ratio undervaluing Xstrata.

Facebook owner Mark Zuckerberg walked into his first spat with Institutional Shareholders with the Calsters $145 bln Teachers pension fund holding that it thinks a corporate governance violation is in order for Facebook for letting the founder an unlimited reign and the right to appoint a successor Calsters bought into Facebook as a Private investor

AT stake are voting agreements the founder has with Accel and DST esp as Classified Boards have been a prime target of active investors on US boards in the last two decades. Silicon Valley IPOs always come with Class B voting rights, both Zynga and Facebook choosing a 10: 1 voting rights ratio in their class

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