LONDON May 31 (Reuters) – Glencore and Xstrata
will pay their advisers almost $200 million for counsel
on the trader’s long-awaited $30 billion all-share bid for the
miner, a major earner for banks and others in a fallow year for
blockbuster deals.
Out of that, banks on the deal will get up to $130 million,
with most of that coming from Xstrata, which will pay its
financial advisers as much as $80 million.
Glencore is being advised by Citigroup, Morgan Stanley,
Credit Suisse and BNP Paribas. Xstrata is being advised by
Deutsche Bank, JP Morgan, Goldman Sachs and Nomura, with a role
also for Barclays Capital.
Both sides were advised by an independent consultant, former
Citi banker Michael Klein, who shuttled between executives to
broker the deal.
Documents sent to shareholders of both companies on Thursday
confirmed the terms of the bid – 2.8 new Glencore shares for
every Xstrata share held – and set a vote date of July 12 for
Xstrata shareholders.
Glencore, which listed just over a year ago in a record
market debut, already owns 34 percent of Xstrata.
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