xterm -pob does not raise the window when it receives Ctrl-G (MATate 1.16, RHEL7). This used to work fine in Gnome2, RHEL6.
This might be a known issue (with the window managers) for which a recent workaround was made (patch #352):
improve portability of iconify/deiconify feature by taking into account some window managers which manipulate the EWMH
_NET_WM_STATE_HIDDENrather than actually minimizing the window (prompted by discussion with Jörg Breitbart).