Sovereign wealth funds holding the keys to a successful merger

 
Elizabeth Fournier
THE Qataris have had their say, several times over. Now the Norwegians are baring their teeth.

With less than two weeks to go until the crunch vote and after yesterday’s drop, Glencore’s shares are already trading at just 2.5 times the value of those of its target – well below the 2.8 times ratio that the original bid offered.

Qatar Holding’s 11.6 per cent stake is almost enough for it to block the deal on its own. Because Glencore owns 34 per cent of Xstrata and is excluded from voting, just 16.5 per cent of shareholder votes against the deal will block it.

With Norway and Pirc also now placing themselves in opposition, Glencore shareholders should be relieved Glasenberg isn’t holding out for success.