DOHA: Qatar’s sovereign wealth fund said yesterday that it will vote in favour of commodities giant Glencore’s bid to merge with Swiss mining group Xstrata, giving a major boost to the deal.
Qatar Holdings, which is the second largest shareholder in Xstrata with 12 percent of its equity, had been holding out for 3.25 Glencore shares for one Xstrata share, but it said it now accepted the 3.05 final offer.
“QH continues to see merit in a combination of the two companies and is satisfied with the terms of the proposed merger, having secured the improved exchange ratio of 3.05 new Glencore shares for every one existing Xstrata share,” the fund said. The fund also announced that it would abstain on proposals to retain top Xstrata top executives in the new merged company out of deference to corporate governance concerns in Britain where both companies are listed. AFP
