You can stay on as CEO for a bit Final terms from Glencore in its hostile bid for Xstrata include this weird proposal: In order to provide clarity on the issue of CEO succession, Mick Davis will become the Chief Executive Officer and executive director of the Combined Group on the Merger becoming effective but to step down within 6 months with Ivan Glasenberg becoming Chief Executive Officer of the Combined Group at that time. What's the point of that? Make Mick feel not so bad? Make sure Xstrata continues to operate in the near term? Or is it to allow for under the radar retention-cum-redundo payments? Maybe all three. Glencore has confirmed that it is content with Xstrata's request for Xstrata management and senior employees to receive appropriate retention and incentive packages. Glencore has asked the independent Xstrata board to consider what (if any) changes they would propose to the retention and incentive arrangement packages set out in Xstrata's supplementary scheme circular dated 8 August 2012, to ensure that they are acceptable to independent Xstrata shareholders. As noted here on Friday, the Xstrata independent directors are now in the sticky position of wanting to reject an offer higher than the one they previously recommended. But there remains the potential for a rear-guard action since... The Merger would continue to be structured as a Scheme [of arrangement] and Glencore could switch to a takeover offer with the consent of the Panel and Xstrata. So the independent directors could recommend these terms (requiring 75 per cent acceptance), meet the panel's September 24 deadline, and still watch the deal get voted down by the Qataris and other rebels. It would be interesting to get the views of the alleged million dollar adviser on this. Related link: Glencore softens Xstrata proposals - FT This entry was posted by Paul Murphy on Monday, September 10th, 2012 at 8:42 and is filed under Uncategorised. Tagged with glencore, ivan glasenberg, mick davis, qatar, tony blair, xstrata.