Bloomberg reported that Xstrata Plc, the largest exporter of coal used by power stations, is still at odds with Glencore International Plc over board seats and retention pay three days before a deadline for it to respond to Glencore's revised GBP 20.5 billion takeover bid.

Xstrata is seeking assurances that one of its executives will replace the Swiss company's CEO Mr Mick Davis on the combined board, according to people familiar with the talks, who asked not to be identified as the discussions are private. While Mr Davis's proposed departure no more than six months after the completion of the deal requires conditions and assurances to retain key managers, which could still potentially thwart the deal, both sides are committed to reaching an accord.

A dramatic 11th hour move by Glencore on September 7th 2012 to save the transaction saw the commodity trader raise its all stock offer and propose its CEO Mr Ivan Glasenberg eventually lead the enlarged company and not Davis as originally planned.

Mr Myles Allsop, an analyst at UBS AG in London, said that "Xstrata's board will most likely recommend the sweetened offer as the management structure will broadly be unchanged. The likelihood of the deal succeeding is greater than 60%."

Source - Bloomberg

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