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Monday, May 28, 2012

Xstrata (XTA) Offering Mick Davis $78.2 Million

With the merger between Glencore (LSE:GLEN) and Xstrata (LSE:XTA) set to be voted on soon, news that Xstrata CEO Mick Davis will receive a bonus package valued at approximately $78.2 million has been announced by the company, according to the Financial Times.

At this time the deal is expected to go through, although there are a number of things that could derail it, including the rejection of the giant bonus package offered Davis by Xstrata shareholders.

The payout would be over a three-year period, which would be guaranteed and not connected to performance.

Documents detailing the $30 billion deal will be released to shareholders this week.

Glencore, which owns just under 34 percent of Xstrata at this time, is offering 2.8 new shares for every one share of Xstrata.

It appears at this time the company won't be increasing the offer, although it has up that option up to several days before the shareholder vote.

If the merger goes through, it would make the new entity the fourth-largest mining company in the world.

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