Glencore shares slump as Blair helps renegotiate Xstrata deal

Glencore shares have slumped after the commodities trader responded to months of shareholder pressure by improving its offer for miner Xstrata.

Glencore has proposed to increase the merger ratio to 3.05 Glencore shares for every Xstrata share, up from the original ratio of 2.88, in a bid to save the $80bn deal. The revised offer, however, proposes that Glencore CEO Ivan Glasenberg becomes CEO of the combined group. Xstrata CEO Mick Davis had been in line to head up the merged entity but his pay package had been the subject of fierce criticism. Schroders' Richard Buxton and Standard Life Investments and were among the first Xstrata shareholders to say they would vote against the original deal back in February. Opposition...