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Qatar raises stake in takeover target Xstrata to over 12%

Qatar has increased its stake in Xstrata in its bid to win a takeover battle with Glencore.

Urs Flueeler/AP

Qatar, the second-largest shareholder in takeover target Xstrata, has bought almost £24-million ($38-million U.S.) of additional shares in the miner, lifting its holding to over 12 per cent and raising the stakes in a standoff with rival investor Glencore.

Glencore, Xstrata's largest shareholder with 34 per cent, 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 per cent.

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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 Sept. 7.

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