Xstrata delays merger with Glencore Xstrata has sought more time to complete its $80bn merger with commodities trader Glencore, saying it needed to consult further with its shareholders in the latest twist of the seven-month natural resources saga. The combination of the miner and the trader could reshape the natural resources industries and is the largest merger and acquisition attempt this year. In a regulatory statement on Friday, the London-listed miner said it had requested the extension from the UK Takeover Panel until October 1, to "enable Xstrata's independent non-executive directors to take full account of feedback from consultation with key Xstrata shareholders." The companies had previously until Monday to announce a recommendation of the merger. The delay came after the companies were independently locked in final-hour board meetings on Thursday afternoon. After the board meetings, people familiar with the situation said both companies had more work to do. Glencore and Xstrata might not need the full-week extension granted by the regulator, with an announcement likely before October 1, one person familiar with the talks said. Xstrata shares fell 3.2 per cent after the announcement, while Glencore shares dropped 1.5 per cent. The need for more time allows the companies to address shareholders" concerns, which include retention payments to top executives at Xstrata and the composition of the board of the combined company, one person familiar with the talks said. Ivan Glasenberg, Glencore's chief executive, this month made a last-ditch attempt to save the merger after opposition from top Xstrata shareholders, increasing its offer from 2.8 shares to 3.05 shares but asking that he become chief executive of the combined group in six months. Xstrata's independent directors have been discussing with top shareholders in the mining group Glencore's new offer and what, if any, changes the miner must introduce in a retention package for its executives. The talks have included the Qatari sovereign wealth fund - the miner's biggest independent shareholder that can block the deal with its 12 per cent stake. Xstrata's board was likely to make small changes to the retention packages proposed for the miner's senior staff, people familiar with the conversations said. With Mick Davis, chief executive, set to cede his role to Mr Glasenberg, his £29m package would no longer form part of the scheme, they added, nor would other executives" payments accelerate on his departure, as previously intended. The performance criteria are likely to be similar to those added in June, after outcry from shareholders forced Xstrata's board to introduce thresholds based on cost savings to the payment proposals.