Swiss mining group Xstrata expressed reserve on Friday to a decision by commodities giant Glencore to raise its take-over bid, hinting the latest offer was still too low.
In a last-bid attempt to salvage the blockbluster merger, Glencore on Friday offered to hike its offer to 3.05 of the new group's shares for every Xstrata share, up from 2.8 shares.
If completed, the merger would create a commodities behemoth worth around 69.8 billion euros ($87.3 billion) according to current market capitalisation.
Xstrata's reaction was perhaps not what Glencore had been hoping for: the new offer was "significantly lower than would be expected in a takeover," it said in a statement.
The mining company also expressed concern over Glencore's intention to have its chief executive Ivan Glasenberg run the future company instead of Xstrata chief Mick Davis, and to amend management incentive arrangements, which it said "represents significant risk around the retention of the Xstrata senior and operational management."
The company said Xstrata executives had drafted a letter to their Swiss suitor requesting "clarification of the outline proposal."
"The proposal lacks sufficient information on key elements," Xstrata lamented in its statement, adding that "on receipt of a detailed proposal the board will carefully consider its merits and in particular whether it would represent a takeover of Xstrata by Glencore."
The general assemblies of the two companies were adjourned Friday to allow for an evaluation of Glencore's new bid.
Xstrata's and Glencore's general assemblies were already postponed once in early July due a demand by a top Xstrata shareholder for better merger terms, as well as grumbling over bonuses being handed out to 73 Xstrata top executives.
Qatar Holding, which is wholly owned by Qatari's sovereign wealth fund and is the single biggest shareholder in Xstrata, had led opposition to the previous terms of the merger.