Wednesday 27 June 2012

RPT-Qatar flexes muscle in shock Glencore move | Reuters

Qatar Holding's shock rebuff of Glencore's offer in its $30 billion takeover bid for miner Xstrata indicates a new, muscular stance by the sovereign fund which had long been content to be the quiet investor in its big-name portfolio.

Late Tuesday, Qatar, Xstrata's second largest shareholder and a potential kingmaker for the deal, said Glencore should pay 3.25 of its shares per Xstrata share, rather than the 2.8 on offer.

The 11th hour move will make it difficult for Glencore and Xstrata to push the merger through on current terms, several sources close to the deal said, leaving only until Thursday evening for Glencore to sweeten the deal or be forced to delay shareholder meetings scheduled for mid-July.

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