Glencore CEO: Focused On Showing Xstrata Holders Glencore's Value

The chief executive of Glencore International PLC (GLEN.LN) plans to meet with Xstrata's shareholders to convince them that the current merger of equals with Xstrata PLC (XTA.LN) makes sense at the current valuation.

Chief Executive Ivan Glasenberg will meet with Xstrata shareholders following its full-year results to better explain two misconceptions about Glencore's business: namely the quality and size of its industrial assets and the way its marketing business operates.

"Our job is now to visit the Xstrata shareholders," Glasenberg said. "We have to explain to them a bit more of the Glencore model."

He declined to comment on whether there was scope to increase the share swap ratio.

"We cannot say that now. We cannot definitely comment on that," he told Dow Jones Newswires in an interview.

Glencore agreed to issue 2.8 Glencore shares to Xstrata shareholders for every Xstrata share. Four Xstrata shareholders accounting for nearly 5% of Xstrata's total outstanding capital have said the current ratio isn't sufficient.

-By Alex MacDonald, Dow Jones Newswires; [phone]; [e-mail]