Source: Financial Times, 2nd February 2012

Glencore's planned buy-out of the rest of Xstrata wins no prizes for originality. After all, Xstrata owes its creation to a $2.5bn coal deal struck a decade ago with Ivan Glasenberg's commodities trader-cum-miner. Glencore held on to a 34 per cent stake in Xstrata, which Mick Davis has transformed into a diversified miner worth $50bn. The two have discussed a reunion before, but Mr Davis resisted it while Glencore was privately-held. But Glencore's $10bn initial public offering last year has given it an acquisition currency. The companies say they are discussing an $80bn merger of equals, but it should be seen as a normal takeover, with Glencore doing the taking over. So what premium should Xstrata's minorities demand?