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’Glenstrata — some backlash? [updated with more backlash]
The Scheme will be subject to the following conditions:
2.1 its approval by a majority in number of the Scheme Shareholders who are on the register of members of Xstrata at the Scheme Voting Record Time,
The word from Zug – Xstrata confirms Glencore approach (Updated)
Xstrata statement:
Response to speculation
Zug, 2 February 2012
Xstrata plc (“Xstrata” or the “Company”) confirms that it has received an approach from and is in discussions with Glencore International plc (“Glencore”) regarding an all share merger of equals which may or may not lead to an offer being made by Glencore for Xstrata.
You have 24 months to comply
Shock, horror.
Just days after the London Stock Exchange paid a jaw dropping price for FTSE, the index provider has decided not take the nuclear option and force a 50 per cent minimum free float requirement on foreign companies listing on London.
Snap news
Breaking pre-market news on Thursday,
- Centrica warns of profits; blames warm weather — statement.
- Glencore shares expected to rally after trader flags solid performance of marketing division — statement.
Glencore and big squeeze
Buying shares in a company ahead of an index re-weighting is rarely a good idea but that hasn’t stopped brokers pushing Glencore ahead of November 24th – the day the lock-up agreement with cornerstone investors expires.
Snap news
Breaking pre-market news on Thursday,
- Glencore adjusted EBIT up 50 per cent to $3.3bn — statement.
- Credit Agricole takes €202m charge on Greek bonds, deputy CEO denies recapitalisation plans — statement and Reuters.
Snap news
Breaking pre-market news on Wednesday,
- Ageas takes gross Greek bonds impairment of €328m and initiates share buyback — statement and statement.
- Glencore makes A$0.87 per share offer for remaining shares in Minara Resources — statement.
The City earnings game
We all know that selective disclosure of price-sensitive information – for example, guiding down analyst forecasts – is frowned upon by the regulatory authorities in this country.
And that creates a problem for listed companies.
Canaries and mines
Nothing has been harder hit in the current market swoon (in London at least) than the mining sector.
Which begs the question of what’s now being priced in?
As luck would have it, Citigroup has run some numbers and concludes:
Snap news
Breaking pre-market news on Monday,
- Glencore to acquire 70 per cent stake in Mina Justa Project for $475m – statement.
- Man Group to acquire Lehman exposure from its GLG Partners subsidiary – statement.
Glencore gives up (on quarterly reporting)
Once was enough for Glencore.
After releasing its maiden set of quarterly results just two weeks ago — sparking a rout in its its shares because of a disappointing performance from its key metals trading business — the company appears keen to remedy the situation.
Glencore, an overvalued Japanese throughput manager
“World’s biggest IPO”. “Unquantifably unique”. “No natural like-for-like”. “A trading house like no other”.
Whatever.
Analysts at MF Global are not buying the PR spin.
Glencore might be the emperor of the commodity world,
Risk remains… off
More of the same on Thursday morning as commentators set nerves on edge by referring to Greece as the eurozone’s Lehman moment.
And so, the euro has taken further punishment, breaking its 100-day moving average for the first time since February.
The UK flotation jinx
The curse strikes again!
At the close of play on Wednesday, Glencore International was trading almost 11 per cent below its IPO price of 530p.
Ouch.
And to think the stabilisation period is still running (to Friday in fact).
Snap news
Breaking pre-market news on Wednesday,
- Glencore says not actively considering offer for ENRC — statement.
- Inditex announces 10 per cent rise in Q1 net profit — statement.
- Game Group revises down sales forecasts — statement.
Xstrata extrapolated (thanks Glencore)
Glencore International has published its maiden results (as a listed company) on Tuesday and it’s having something of an impact on Xstrata.
That’s because Glencore’s numbers help us make a pretty good guess as to how Xstrata has performed in the same period.
Snap news
Breaking pre-market news on Tuesday,
- Avis Budget to buy Avis Europe for £636m/315p a share — statement.
- Glencore International reports first results as a listed company — statement.
- Tesco does not move back into growth in the UK — statement.
ENRC(ore) International?
Leading the FTSE 100 leaderboard on Monday morning, is Friday’s biggest faller.
That follows a Sunday Times report that claimed everyone’s favourite commodities trader is plotting a transformational £12bn bid for the Kazakh mining group,
Sino-Forest – a defence [updated]
Along with RBC Dominion Securities, Dundee Securities has been the biggest cheerleader for Sino-Forest, the Toronto-listed Chinese forestry operator accused of a massive fraud.
And while it’s put its rating and target price under review ($C34 a share if you were wondering) it still believes Sino-Forest will be exonerated once the independent committee files its report.
Planet Hendry
That chart (click to enlarge) and more in Hugh Hendry’s April letter to investors, H/T Tail Chaser. There’s a very interesting assault on Asian commodity giant Olam too, for Glencore watchers…
Snap news
Breaking pre-market news on Wednesday,
- Nationwide says underlying annual profits up 30 per cent, helped by lower bad debt charges — statement.
- Glencore shares fall 3 per cent on Hong Kong debut — report.
Glencore debuts… [updated]
Up 3 per cent from the IPO price of 530p at pixel time and trading on a conditional basis — chart via Reuters:
Apparently they’re hoping for a 5-10 per cent rise on the first day…
Update — Aargh.
Snap news
Breaking pre-market news on Thursday,
- Morgan Stanley gives pre-stabilisation notice on Glencore IPO – statement.
- Bank of Ireland says Irish economy has begun to stabilise – statement.
- Deutsche Bank said to have “privately accepted”
Snap news
Breaking pre-market news on Monday,
- Glencore said to lift IPO price range to 520-550p a share – Reuters.
- Euro slumps to seven-week low after IMF head’s arrest – Reuters.
- London Stock Exchange says TMX has received approach from Maple Group – statement.
What’s going on in IPO land?
First it’s RenRen, then Dunkin’ Donuts and of course, the mother of them all, Glencore, to name a tiny handful of the highest-profile IPOs – planned or executed – making headlines on Thursday.
In the US alone,
Glencore’s Achilles’ heel
FT Alphaville has been poring over the Glencore prospectus overnight and we’ve come across a few further points of interest on the matter of funding.
As we noted earlier last month, Glencore’s marketing business is very much focused on tried and tested arbitrage strategies unconnected to the ‘flat-price’ of commodities,
More from the Glencore prospectus
Remember this?
It’s the Glencore CDS spread, courtesy of Markit, in December 2008.
We never fully got the bottom of why it surged to 3125 bps other than the fact the trading house was heavily reliant on short term debt markets to fund its marketing activities.
Meet the $9.6bn man (and Glencore’s other billionaires)
It’s out, and longer than Tolstoy’s War & Peace.
Presenting the Glencore prospectus, which is so big we can’t upload it to our servers — but you can find the 134MB file on Scribd once it loads!
A quick glance at the document reveals that the 15.8 per cent stake of chief executive Ivan Glasenberg will be worth around $9.6bn at the mid points of the 480p to 580p range.
Glencore IPO term sheet
Related link:
Price Range and Publication of Prospectus – Glencore