FT Alphaville " The word from Zug - Xstrata confirms Glencore approach Posted by Paul Murphy on Feb 02 08:04. Xstrata statement: Response to speculation Zug, 2 February 2012 Xstrata plc ("Xstrata" or the "Company") confirms that it has received an approach from and is in discussions with Glencore International plc ("Glencore") regarding an all share merger of equals which may or may not lead to an offer being made by Glencore for Xstrata. There can be no certainty that any offer will be made. In accordance with Rule 2.6 (a) of the City Code on Takeovers and Mergers (the "Code"), Glencore is now required, by no later than 5:00 p.m. on 1 March 2012, to either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. The deadline can be extended with the consent of the Panel in accordance with Rule 2.6 (c) of the Code. So, finally, the plan is for an "all share merger of equals." The two companies do in fact have similar market caps. The FT's Javier Blas on the matter here and Bloomberg here. This entry was posted by Paul Murphy on Thursday, February 2nd, 2012 at 8:04 and is filed under Capital markets, M&A. Tagged with glencore, xstrata.