The battle lines are hardening in the fight over control for the mining company Xstrata.
Qatar Holding, the sovereign wealth fund, has increased its stake in the company to above 12 percent from 11.95 percent, buying nearly £24 million ($38 million) of shares, as it continues to oppose the planned $30 billion takeover of Xstrata by the commodities trading company Glencore International.
The move comes days after Ivan Glasenberg, Glencore's chief executive, insisted that his company would not pay a higher price for Xstrata and could walk away from the deal. Qatar Holding, the second-largest Xstrata shareholder behind Glencore, has been steadily amassing a larger stake.
Glencore has offered 2.8 of its shares for every Xstrata share, but the Qatar fund is pushing for a ratio of 3.25 percent, arguing that the current proposal does not adequately recognize Xstrata's value.
An influential voice lent support to those opposed to the deal. Institutiona l Shareholder Services, the advisory firm, recommended that Xstrata shareholders vote against the transaction, saying, “Glencore might have the potential to be more generous.â€
Though the boards of Glencore and Xstrata are backing the all-share deal, the companies need the support of 75 percent of their individual shareholders in order to complete the transaction, which would create one of the world's biggest commodities firms.
Xstrata's shareholders are scheduled to vote on the deal on Sept. 7.
