Mining company Anglo American turns to Sir John Parker in face of Xstrata bid

By SAM FLEMING FOR MAILONLINE
Updated:

Anglo American is on the verge of bolstering its defences against Xstrata by appointing Sir John Parker as its chairman.

Barring last-minute hitches, confirmation of Parker as replacement to Sir Mark Moody-Stuart could come today or early next week.

Parker would provide a heavyweight presence in a boardroom that has struggled to stitch together a convincing strategy in the face of Xstrata's proposed ' nil-premium' merger.

Chief executive Cynthia Carroll is under intense pressure after purchasing a clutch of Brazilian iron assets at hefty valuations last year and scrapping the firm's dividend in February.

Parker was first offered the post last year, but a split in Anglo's boardroom then scuppered the appointment.

Cynthia Carroll

Cythia Carroll: Questions surround the Anglo chief

However, since then acquisitive miner Mick Davis has come calling with a proposal to merge Swissbased Xstrata with Anglo (up 87.5p to 1,651p) in a £40bn deal.

This has forced Anglo to move quickly to put a senior figure in the chair after the departure of Moody-Stuart, who has been forced to extend his seven-year tenure.

Parker already chairs fellow FTSE 100 giant National Grid, and it is understood he will retain that role.

He is expected to relinquish the chairmanship of packaging group Mondi, which he jointly chairs with Cyril Ramaphosa. 

The first decision of the new chairman will be to decide whether to engage with Xstrata (up 22.7p to 609.80p), whose finance officer Trevor Reid is understood to have been meeting Anglo shareholders this week.

However, City sources said Anglo's South African shareholders have been unimpressed with Xstrata's suggestion that the two firms merge without the offer of any premium.

The other question dogging Anglo is the future of Carroll, who is struggling to maintain the support of some of the firm's investors.

Some say Anglo Coal chief executive Ian Cockerill should be considered as a future CEO.

In recent weeks Anglo has come under pressure from Pretoria to appoint a black South African, such as Ramaphosa, to the chairmanship.

The firm is the biggest investor in South Africa's crucial mining industry and has dominated its business world since its foundation in Johannesburg in 1917.

Since 1999, however, Anglo has been headquartered in London.

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