Anglo names chairman to lead Xstrata defense

By Eric Onstad

LONDON (Reuters) - Anglo American Plc (AAL.L) (AGLJ.J) appointed veteran industrialist John Parker as chairman on Friday, moving to bolster its leadership as it seeks to fend off an unwanted merger proposal by rival Xstrata Plc (XTA.L).

Analysts said Parker was strong choice given his experience in management and merger activity, noting that although he made no mention of Xstrata, his first comments reiterated many of Anglo's arguments that it has strong prospects as a stand-alone group.

Analyst Tim Huff at RBS said the appointment was a "huge positive strategically", noting: "For Anglo shareholders, there will be a strong drive toward shareholder value, the delivery of which will in itself determine whether Anglo and Xstrata will go for a nil-premium merger."

Anglo, which owns the world's biggest platinum producer, said on Friday Parker would join the board immediately and would take up the post held by retiring Mark Moody-Stuart on August 1.

Parker is chairman of British energy network provider National Grid Plc (NG.L) and will retain that post, but will step down as co-chairman of paper and packaging group Mondi Group (MNDI.L) (MNDJ.J).

Mondi, part of Anglo until it was spun off two years ago, said Parker would step down as chairman but would stay on until a successor was found.

Anglo shares in London fell 0.4 percent to 1,645 pence by 0810 GMT, compared with a 0.7 percent drop in the UK mining index .FTNMX1770.

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