(Reuters) – Xstrata shareholders will vote on a proposed management retention package before deciding on Glencore’s $32 billion bid, two people familiar with the talks told Reuters, a structure designed to secure maximum support for the deal.
In the coming weeks, shareholders will first vote on the 140 million pound ($226.07 million) two-year pay package aimed at retaining Xstrata’s key managers. They will then vote separately on the merger, the people said.
The new proposal was a condition a group of shareholders had imposed on Xstrata board to recommend the deal, the people said. Under UK takeover rules, the deal has to be announced by Monday at the latest.
“It will give shareholders the ability to choose an alternative. Those who only want a deal with Xstrata’s managers will be able to do voice it”, said one of the persons.
($1 = 0.6193 British pounds)
(Editing by Douwe Miedema)