Qatar to back $33bn Xstrata takeover deal

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Qatar Holding has said it will back Glencore's raised bid for miner Xstrata, paving the way for the $33bn takeover deal to go ahead.

Qatar, an unexpected kingmaker in commodity trader Glencore's bid for Xstrata, said on Thursday that it would vote in favor of two key resolutions on the takeover, meaning Glencore's plan to create a mining and trading powerhouse is on track.

The vote, which is scheduled for November 20, ten months after Glencore first approached Xstrata, comes after Glencore in September bowed to investor pressure and raised its bid to 3.05 new shares for every Xstrata share from an earlier ratio of 2.8.

Under a complex structure of votes, Xstrata investors will be able to express their views on a controversial management retention plan without endangering the merger.

Qatar said it would abstain from voting on the pay plan.

The tiny gas rich Gulf state built up a stake of more than 12 percent in Xstrata - a key position in a deal structure that allows just 16.5 percent of Xstrata shareholders to block any bid.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Shuttered banks, ATM queues and $77 daily limits: Greece plunges into crisis

Shuttered banks, ATM queues and $77 daily limits: Greece plunges into crisis

Breakdown in talks between Athens and its creditors plunged the...

Malaysia fund's $4.5bn rescue may weigh on Abu Dhabi's IPIC

Malaysia fund's $4.5bn rescue may weigh on Abu Dhabi's IPIC

International Petroleum Investment Co came to the aid of Malaysia...

Debt market beckons as Saudi bourse opens to foreigners

Debt market beckons as Saudi bourse opens to foreigners

Corporate bond issuance in the kingdom is the most active in...

Most Discussed