Qatar Holdings, the sovereign wealth fund standing between commodities giant Glencore PLC and a spot as the world’s fourth largest diversified miner, says it has yet to decide whether to support a sweetened takeover offer for Xstrata PLC.
Baar, Switzerland-based Glencore is offering 3.05 shares for each share of Xstrata, a deal that would be worth some $36-billion, after Qatar and other shareholders said an earlier stock ratio of 2.80 Glencore shares was too low.
The offer came minutes ahead of an Xstrata meeting on Friday, where shareholders were seen voting against the takeover, and was seen as a sign Glencore had managed to get key investors on board with the new deal.
“In order to provide clarity to the market and following consultation with the Takeover Panel, QH wishes to make clear that it has made no decision yet as to whether or not it would accept the Revised Proposal,” Qatar, a global investment house founded by the Qatar Investment Authority, said on Tuesday.
“QH will make its decision in due course after giving careful consideration to the implications of the proposed management changes, the other elements of the Revised Proposal and the views of Xstrata’s board.”
Qatar built its position in Xstrata from 3 per cent in February to about 12 per cent in June, when it came out as a surprise opponent to the deal on offer, demanding at least 3.25 Glencore shares for each Xstrata share.