Glencore delays $26 billion Xstrata bid after Qatar move

Commodities trader Glencore pushed back its $26 billion bid for miner Xstrata on Wednesday after shareholder Qatar stunned the pair with a late demand for better terms.

The Qatari intervention pushed the deal to the brink as it prompted a string of major shareholders to revisit their own concerns, such as soaring executive pay and fears that the combined entity would take on riskier business.

The Qatar Investment Authority (QIA) had kept silent for months as it built the second-largest stake in Xstrata, then called late on Tuesday for 3.25 new Glencore shares for every Xstrata share, up from the 2.8 on offer.

"Three cheers for the Qataris," Richard Buxton, head of UK equities at Schroders, told Reuters. "We've said all along that the ratio was wrong so they've either now got to improve the terms or see this deal get voted down."

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- Posted: 2012-06-27 14:38:47

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