Article: Xstrata reaches out to Anglo investors

British and Swiss mining giant says cost savings alone justify merger with its rival

Xstrata has stepped up its charm offensive aimed at Anglo American shareholders and analysts in an attempt to persuade them that cost savings alone justify the proposed tie-up between the two, and that a premium for the merger is not necessary.

The Anglo-Swiss mining group hosted a beauty parade of its South African coal and other overseas assets in Johannesburg, aimed chiefly at South African investors, who it concedes are unfamiliar with its operations in the country. Xstrata has proposed a "merger of equals" with Anglo American, saying both companies' assets are complimentary and that a combined group ...

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