Xstrata "disappointed" by Anglo American rebuff

0 Comments | AFP, June, 2009

GENEVA (AFP) — Swiss mining group Xstrata said Tuesday it was "disappointed" and "surprised" by rival Anglo American's rejection of its merger bid.

"We are disappointed by Anglo American's hasty rejection of our proposal for a merger of equals," Xstrata said in a statement.

"We are also surprised that Anglo American's board of directors did not think it useful to engage in discussions with Xstrata" given the "considerable value" that the proposed tie-up would create for shareholders in both companies.

London-based Anglo American on Monday maintained that "the strategic case for the combination is unattractive for Anglo American shareholders.

"Irrespective of this lack of strategic merit, the terms proposed by Xstrata were totally unacceptable."

The...