Glencore

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

Shares across Europe were lower in trading this morning as concerns mounted ahead of a key gathering of central bankers on Friday.

Norway's oil-backed sovereign wealth fund has outlined its fierce opposition to the proposed Glencore-Xstrata merger, putting the proposed $30bn takeover under threat.

Glencore has been hit by falling commodity prices, reporting a drop in pre-tax earnings of a quarter in the first half of the year, but will forge ahead with Xstrata merger plans despite a challenging backdrop.

The Glencore and Xstrata merger has come under increasing pressure as activist investor Knight Vinke has become the latest critic of the deal, calling for Glencore to up its offer.

Glencore is under pressure to improve the terms of its $30bn offer for Xstrata after the latter proposed new compensation arrangements, and a leading shareholder came out against the deal.

The chief executive of Xstrata is in line for a £75m payday as head of the company created from a merger of the miner with commodities giant Glencore.

SPECIAL REPORT

BlackRock has broken its silence over the proposed merger of commodities giant Glencore and miner Xstrata, saying it will back the deal.

Glencore has given no sign of adjusting the terms of its Xstrata takeover offer as it reports a 7% rise in full-year profit despite numbers slumping in the second half of 2012.