LONDON - Glencore, the world's largest commodities trader, confirmed its increased all-share offer for the mining giant Xstrata on Monday, but warned that it would not further sweeten the deal, which would value the combined company at about $90 billion.
Under the terms of the revised offer, Glencore is now offering 3.05 of its shares for every Xstrata share after shareholders in the mining company had balked at Glencore's initial 2.8 share bid.
The commodities trader was forced to raise its offer on Friday after several Xstrata sharholders, including Qatar Holding, the Middle Eastern sovereign wealth fund, said they would vote against the deal if the initial share exchange was not increased.
In response to the unrest, Glencore increased its offer, though said it would not make any additional changes.
Glencore ‘‘will not increase the merger ratio further,'' the company said in a news release on Monday.
As part of the new offer, Mick Davis, the chief executive of Xstrata, will become head of the combined company after the deal is completed, but will step down after six months. Mr. Davis will be replaced by Glencore's chief executive, Ivan Glasenberg.
It is unclear whether the proposed terms will appease Xstrata shareholders. Qatar has not publicly voiced an opinion on the deal, and the board of Xstrata has said the new price might still be too low.
In a move that could placate wary investors, Glencore also confirmed on Monday that the deal would remain a merger.
The commodities trader said last week that it wanted the option to restructure the deal as a takeover. The change would have required only 50 percent of Xstrata investors to agree to the deal.
Several hurdles may still scupper the plan. On Friday, Xstrata warned shareholders about potential problems, highlighting the “significant risk†created if Mr. Davis and his lieutenants did not lead the merged Glencore-Xstrata.
T he mining company also said the new ratio offered a premium “significantly lower than would be expected in a takeover.â€
On Monday, Xstrata said its board would consider Glencore's revised bid, and would decide by Sept. 24 whether to put the offer to its shareholders.
In early morning trading in London, shares in Xstrata rose three percent, while stock in Glencore fell around one percent.
