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Much will depend on whether Glencore is willing to pay a premium for control of Xstrata.
But Simon French at Panmure Gordon was negative on Tui, saying the rating was too high: The aborted bid approach from Tui AG highlighted that the parent company does not want to pay a premium for control of this minority.
So unless he comes up with a plan, better to let Mr. Burkle keep railing from the sidelines against Barnes & Noble or force him to pay a premium for control and let him figure it out from there.
The fact that the current market capitalisations of Xstrata and Anglo are almost identical at around $30bn, with very similar net debt levels suggests to us additional flexibility in how any potential deal could be structured (i.e. some potential for a nil premium merger of equals although we suspect Xstrata may be more likely to pay a premium for control).
But realising such savings requires full control, since only then is it possible to do things such as merging trading floors ie, saving money by closing one.Buying the 34.9% of Paribas's shares that it did not gain on August 6th should not be as costly as making its takeover offer, since BNP will not have to pay a premium for control.
"They paid a premium for control because Optus was the only [telecom] available," said CLSA's Cheung.
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This they accomplished without launching a takeover bid or paying a premium for control.Instead their power has come about gradually, through a highly complex series of transactions.
The board of Cracker Barrel said it had implemented the poison pill "to assure that all of Cracker Barrel's shareholders receive fair and equal treatment in the event of any proposed takeover of the company and to guard against abusive tactics to gain control of Cracker Barrel without paying all shareholders a premium for that control".
"The shareholder rights plan is designed to assure that all of Cracker Barrel's shareholders receive fair and equal treatment in the event of any proposed takeover of the Company and to guard against any attempt to gain control of Cracker Barrel without paying all shareholders a premium for that control," Chief Executive Sandra B. Cochran said in a statement.
Vivendi said it paid a premium for continuing control of the company.
Another common peccadillo was for strategic investors to pay a premium for a controlling stake in a company without making a general offer to shareholders.
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