Norway fund opposes Glencore-Xstrata merger: FT

SINGAPORE Tue Aug 28, 2012 10:11pm EDT

The logo of Glencore is seen in front of the company's headquarters in the Swiss town of Zug May 9, 2012. REUTERS/Arnd Wiegmann

The logo of Glencore is seen in front of the company's headquarters in the Swiss town of Zug May 9, 2012.

Credit: Reuters/Arnd Wiegmann

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SINGAPORE (Reuters) - A Norwegian sovereign wealth fund has opposed the terms of commodities trader Glencore's (GLEN.L) proposed $30 billion takeover of miner Xstrata XTA.L, the Financial Times reported on Wednesday, without citing sources.

Norway joins Qatar whose own sovereign wealth fund investment arm demanded improved terms and threatened to vote against the deal. Qatar Holding is the second-largest shareholder in Xstrata with a 12 percent stake.

Norges Bank Investment Management (NBIM) has spent more than $500 million over the past few weeks buying shares of Xstrata, the newspaper said, citing regulatory filings.

The Norwegian fund is now the fourth-largest shareholder in Xstrata, after Glencore, Qatar and Blackrock, with a 2.97 percent interest, the FT said.

NBIM increased its stake in Xstrata from 1.72 percent in June after it "privately indicated" to both Xstrata and Glencore that it opposed the current terms of their planned merger, the newspaper reported, without saying where the information came from.

Glencore, which already owns 34 percent of Xstrata, is offering 2.8 new shares for every Xstrata share held to secure a tie-up it hopes will create a mining and trading powerhouse. Qatar has demanded a ratio of 3.25.

Xstrata and Glencore shareholders are scheduled to vote on the deal on September 7. (Writing by Manolo Serapio Jr.; Editing by Daniel Magnowski)

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