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Mon 13 Aug 2012 04:41 PM

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Qatar ups stake in Xstrata to 11.5%

Move is latest twist in Qatar Holding's standoff with Glencore over possible takeover

Qatar ups stake in Xstrata to 11.5%

Qatar, the second-largest shareholder in takeover target Xstrata, has again lifted its stake in its standoff with suitor Glencore, bringing its holding to 11.5 percent.

Qatar Holding bought shares consistently after commodities trader Glencore's $26bn all-share bid for Xstrata was announced in February, lifting its stake from 3 percent to almost 11 percent.

The buying stopped after the sovereign wealth fund's surprise announcement in June that it was demanding improved terms to support the deal.

It resumed buying in late July and has since upped its stake incrementally, buying shares on Friday to raise its stake to 11.456 percent, according to a regulatory filing on Monday.

Glencore, which already owns 34 percent of Xstrata, is offering 2.8 new shares for every Xstrata share held to secure a tie-up it hopes will create a mining and trading powerhouse. Qatar said last month it was demanding a ratio of 3.25.

The two are currently locked in talks with a thaw on either side not expected until much closer to the date on which shareholders will be called to vote on the deal - September 7.

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