Xstrata persists in bid to wed Anglo American

Xstrata PLC on Wednesday urged rival mining company Anglo American PLC to reconsider its rejection of a proposed merger.

On Monday, Anglo American rejected the bid by the U.K.-Swiss company as "completely unacceptable" because it would dilute Anglo American's exposure to platinum and diamond markets, while increasing its exposure to nickel and zinc, whose prices have been hit hard by the global economic slowdown.

"We remain convinced of the undeniable logic for a merger of equals between Anglo American and Xstrata," said Mick Davis, Xstrata's chief executive.

"It must surely be in the interests of both companies' shareholders for Xstrata and Anglo American to work together to test in more detail the attractive proposition we have put to the Anglo American board," Davis added.

The merger would create a group worth $68 billion, ranking the combined company behind BHP Billiton and Rio Tinto.

Xstrata shares were up 4.9 percent at 671.2 pence on the London Stock Exchange, and Anglo American shares rose 7.9 percent to 1,782 pence.