Glencore International chief executive officer Ivan Glasenberg is still waiting for a decision from Qatar on whether it will support this year's largest takeover, five days after a late-night meeting with the emirate's prime minister bought more time for the deal.
Sovereign wealth fund Qatar Holding hasn't reached a conclusion on Glencore's revised #22 billion (€27.5 billion) offer for Xstrata, the fund confirmed today.
Qatar Holding, owner of 12 per cent of Xstrata, is commodity trader Glencore's largest obstacle to completing a takeover first announced in February.
Glencore yesterday reiterated it will raise its all-share bid by 9 per cent and said Xstrata CEO Mick Davis will lead the combined group for as long as six months.
That's a change from September 7, when Glencore said Glasenberg would take the top job, tearing up a February agreement for Davis to have the role.
The Qataris "have not publicly given their consent, but we believe it unlikely that Glencore would have made a full and final offer without having sought their consent," Jason Fairclough, an analyst at Bank of America, wrote in a note today.
The analysts said they "expect the Qataris are waiting for Xstrata's board recommendation before showing their hand."
Qatar Holding said it has made no decision on whether or not to accept Glencore's revised proposal.
The fund "will make its decision in due course after giving careful consideration to the implications of the proposed management changes, the other elements of the revised proposal and the views of Xstrata's board," it said in a statement.
A spokesman for Glencore, the largest publicly traded commodities supplier, declined to comment.
Xstrata is starting to talk to investors, a process that will form an important part of the company's response to Glencore that's due by September 24, a person with knowledge of the matter said.
The Qataris "will find a solution because if the deal falls apart, then that's not good for everyone" because Glencore and Xstrata shares will drop, John Meyer, an analyst at Fairfax IS in London, said by phone. "
Bloomberg
