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Xstrata takeover battle heats up

Stockhouse Editorial
0 Comments| August 23, 2012

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According to published reports, Qatar Holding, a global investment house, is preparing to face off with rival investor Glencore International plc (OTO: GLCNF, Stock Forum), an integrated commodities producer and marketer, in a takeover battle for Xstrata plc’s (OTO: XSRAF, Stock Forum), a Swiss company with major nickel operations in Canada.

Qatar has reportedly increased its stake in Xstrata to over 12% by investing a further US$38 million into the company.

Currently, Glencore is Xstrata’s largest shareholder with 34%.

Both companies who are attempting a takeover of Xstrata will face a shareholder vote on the deal on Sept. 7, 2012.

On Thursday, Xstrata was trading at $14.67 a share. The company has a market cap of $44 billion, based on 3 billion shares outstanding. The 52-week high and low was $20.30 and $10.98 respectively.



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