Morning business round-up: Xstrata get new Glencore bid

Published

What made the business news in Asia and Europe this morning? Here's our daily business round-up:

Glencore raised its offer to 3.05 of its shares for each Xstrata share, from the 2.8 previously offered.

Qatar Holding, which owns about 12% of Xstrata, had said it would block the merger as it wanted a ratio of 3.25.

Earlier, Glencore had delayed Friday's shareholder meeting to vote on the original proposal.

Glencore has also proposed that its chief executive Ivan Glasenberg should lead the merged entity instead of Xstrata's boss Mick Davis, who would have been the new chief executive under the old terms.

Under the old deal, Mr Glasenberg would have become deputy chief executive of the new business.

The euro rose 0.3% to $1.2673 in early trading on Friday.

It also hit a two-month peak against the Japanese yen and a one-month peak against the Swiss franc.

Yields on Spanish and Italian 10-year bonds fell further, easing implied borrowing costs for the debt-laden countries.

A Lufthansa spokesman said: "On average there are 1,800 Lufthansa flights during a normal day, around half of these will take place."

All German regions and all types of flights have been affected, said the spokesman, including long-haul.

media captionBiz Heads

The social networking site bid $1bn (£628m) for Instagram in April, and was given the green light for the deal from US regulators at the end of August.

But, after the sharp fall in Facebook shares since the firm went public in May, the cash plus share offer ended up being worth nearer $700m.

Facebook shares launched at $38 each but closed on Thursday at $19.

On his Facebook page, he said the list of the loan terms "contains everything that is not in Hungary's interests".

Mr Orban said this included pension cuts and the withdrawal of a tax on banks.

He said his government would present an "alternative negotiation proposal".

The IMF has not publicly commented on Mr Orban's remarks.

The latest Business Daily programme from the BBC World Service considers whether the pallet is the most important object in the global economy.

Around the BBC