Qatar Holding LLC, the investment arm of the nation’s sovereign wealth fund, said it plans to vote its 12 percent stake in Xstrata Plc (XTA) against Glencore International Plc (GLEN)’s $31 billion offer for the mining company.
“Although it continues to support the principle of a combination of Glencore with Xstrata, it has determined that it will not support the proposed merger terms,” the fund said today in a statement. Qatar Holding “believes that Xstrata has a strong future, whether in combination with Glencore on acceptable terms or as a stand-alone entity, and that its shares represent an attractive long-term investment.”
The likelihood of the year’s biggest takeover succeeding is waning as shareholders including the Qatar fund maintain their opposition and Glencore Chief Executive Officer Ivan Glasenberg fends off calls to increase it. An offer of 3.25 Glencore shares from the current bid of 2.8 shares agreed to by Xstrata’s board would be “more appropriate,” Qatar said in June.
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