Glencore faces stand-off in Xstrata charm offensive

Xstrata shareholders dig in

LONDON (Reuters) - Glencore, days into a campaign to win approval from recalcitrant Xstrata shareholders for a $36 billion bid, is facing a stand-off as naysayers dig in their heels and the trader warns it would walk away rather than overpay.

The world's largest diversified commodities trader, which already owns 34 percent of Xstrata, began courting institutional investors this week after publishing 2011 earnings -- starting its first roadshow since the all-share deal was agreed in February.

Alongside its results earlier this week, Glencore defended a "merger of equals" proposal which it says is fair and already offers Xstrata shareholders a premium, as well as the top jobs in the enlarged company. The trader's boss and single largest shareholder, Ivan Glasenberg, will be deputy chief executive, reporting to Xstrata's Mick Davis.

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