June 27, 2012 - 1:46 AM
DUBAI, United Arab Emirates - A Qatari government investment fund that is a major shareholder in Xstrata is demanding better terms in the Anglo-Swiss mining company's proposed takeover by commodities giant Glencore International.
Qatar Holding said late Tuesday it sees merit in combining the companies, but wants 3.25 new Glencore shares for each Xstrata share owned as part of the deal. That is significantly more than the 2.8 shares Glencore originally offered.
The unexpected demand seriously complicates plans by Glencore and Xstrata to close the deal, which promises to create a company with a combined value of around $90 billion.
Qatar Holding has built a stake of more than 10 per cent in Xstrata in recent months. It is the main investment arm of the natural gas-rich Gulf state Qatar's sovereign wealth fund.
News from © The Associated Press, 2012