But Glencore, under London Stock Exchange reporting obligations, said it would only contribute 300 million euros in equity (taking a tiny equity interest of 0.54 %, and even that only «indirectly»), while the
rest of the money was provided by «QIA and by non-recourse bank
financing,» the latter being a loan that effectively insulates Glencore
against most of the risks of owning Rosneft shares.
In a busy market, where purchases often end in bidding wars, having your
financing in line could make your offer stand out
against the
rest.
One common strategy is to sue everybody, then to settle with a minor player early on for a fairly low dollar amount compared to risk at trial and to use that settlement to help
finance the
rest of the litigation
against the primary person at fault in the case.