LONDON - Glencore, the world's biggest commodities trader, will have to wait a little longer to see whether its increased all-share offer for the mining giant Xstrata will be backed by Xstrata's largest shareholder.
Qatar Holding, which owns a 12 percent stake in Xstrata, said on Tuesday that it had yet to decide to support Glencore's revised offer for the mining company. The commodities trader has increased its bid to 3.05 of its own shares for each share in Xstrata.
Qatar Holding, the sovereign wealth fund for the Middle Eastern country, had called on Glencore to improve its initial 2.8 share exchange for each of Xstrata's shares, and galvanized support from other investors, including the activist hedge fund Knight Vinke, to reject the bid.
The shareholder unrest has forced Glencore to revise its proposed merger plans with Xstrata, though Glencore also demanded that its chief executive, Ivan Glasenberg, take over as head of the combined company earlier than had been initially planned.
Responding to the increased all-share offer, Qatar Holding said on Tuesday that it had not yet decided to support the deal, which must be supported by at least 75 percent of Xstrata's shareholders.
Qatar Holding ‘‘has made no decision yet as to whether or not it would accept the revised proposal,'' the company said in a statement.
The sovereign wealth fund, which has aggressively increased its stake in Xstrata over the summer, said it would review the proposed management changes and take into consideration the views of Xstrata's board before deciding on its position.
On Monday, Xstrata's board said it would review Glencore's new proposal and decide by Sept. 24 whether to put the revised offer to its shareholders, though an announcement could come earlier.
To ease potential shareholder opposition, Glencore has said that it will continue to pursue the deal as a merger, instead of an outright takeover.
Und er British law, a takeover would only require the support of 50 percent of Xstrata shareholders, and Glencore, which owns 34 percent of the mining company, would be able to use its owns shares, reducing the influence of Qatar.
In early morning trading in London, shares in Xstrata had fallen 1.6 percent, while stock in Glencore dropped 1.4 percent.
