Xstrata's shareholders, or some of them, are in unco-operative mood, which is not welcome news for Ivan Glasenberg, Glencore's chief executive, as he pursues his lowball all-share takeover attempt.
The chunky 19% vote against David Rough, head of Xstrata's pay committee, was the highlight of the results from the annual meeting. But there was also a 13% vote against Glasenberg's re-election to the board of Xstrata, on which he sits by virtue of Glencore's right to appoint three directors to reflect its 35% shareholding. Given that Glencore will have voted its shares in support of its boss, a 13% refusal counts as a big score. It is also significantly more than the thin 3.75% opposition to Glasenberg a year ago.
When it comes to Glencore's takeover offer, the bidder is not allowed to vote its shares. So Tuesday's Xstrata rebels, if they dislike Glasenberg's terms as much as his presence on their board, will enjoy a louder voice. Glencore's 75% hurdle for success looks a stretch.
In truth, one didn't have to see Tuesday's voting to reach that conclusion. Behind the scenes, most fund managers who regard the bid ratio (2.8 Glencore shares for every Xstrata share) as mean appear unmoved by Glasenberg's charm offensive. They think he's testing the water to see what he has to pay to bag his longed-for prey. They're probably right – and there's no harm in giving Glasenberg a prod via an unrelated vote.
