LONDON Qatar, the second-largest shareholder in takeover target Xstrata XTA.L, has bought almost 24 million pounds ($38 million) of additional shares in the miner, lifting its holding to over 12 percent and raising the stakes in a standoff with rival investor Glencore (GLEN.L).
Glencore, Xstrata's largest shareholder with 34 percent, 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 said last month it was demanding a ratio of 3.25.
Qatar has been incrementally raising its stake in Xstrata since late July, when it owned just under 11 percent.
Glencore earlier this week made its strongest suggestion yet that it could walk away from its $30 billion bid for Xstrata, saying it was not a "must-do" deal.
Xstrata shareholders are due to vote on the deal on September 7.($1 = 0.6328 British pounds)
(Reporting by Clara Ferreira-Marques)