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DowJones – 15 Nov 2012
1223 GMT [Dow Jones]–Glencore (GLEN.LN) drops 0.4% to 330p and Xstrata (XTA.LN) climbs 1.7% to 964p following the news Xstrata’s second-largest shareholder, sovereign wealth fund Qatar Holding, will vote in favor next week of the merger between the two companies. It looks like the deal will go through, says Mike van Dulken at Accendo Markets, given other minority shareholders against the deal have lost their important Qatari partner. Says Glencore shares trading around 329p imply an offer to around 1003p/share to Xstrata shareholders, representing significant upside for the current Xstrata share price. ([email protected])
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research