LONDON -- Qatar Holding LLC is poised to raise its stake in
Xstrata PLC (XTA.LN) to 25% should the miner's planned tie-up with
commodities giant Glencore International PLC (GLEN.LN) collapse,
giving it a de facto veto over any future merger, The Sunday
Telegraph reports.
The sovereign wealth fund has assured Xstrata's chief executive
Mick Davis that he will have their full backing should shareholders
block the deal, a move that would send the miner's share price
plummeting, the newspaper said, citing sources close to the
bid.
It added that the strategy is thought to be an opportunistic
attempt to buy in at a bargain price and a strategic move to ensure
Glencore boss Ivan Glasenberg will never be able to force through a
deal without its consent.
Qatar Holding wasn't immediately available to comment on the
newspaper report.
-Write to London Bureau at resourcesdesklondon@dowjones.com
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