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’[SFTW] ‘orrible merger! Read all about it!
If he’s selling, I’m not buying. This was an excellent plan with last year’s public offer of Glencore shares. Dazzled by the fees and muzzled by the conflicts of interest, very few mining analysts were in a position to say what they thought.
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.
Snap news
Breaking pre-market news on Tuesday,
- Xstrata announces further significant increases to mineral resources in South America – statement.
- Frontline plans to raise $250m new equity as part of restructuring – statement.
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 Thursday,
- Credit Suisse Q2 net income falls 52 per cent, plans to cut jobs – statement, report.
- XStrata Coal to acquire First Coal for CDN$147m – statement.
- Royal Dutch Shell adjusted Q2 earnings up 77 per cent to $8bn – 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.
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).
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.
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,
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.
Snap news
Breaking pre-market news on Monday,
- Arcus European Infrastructure makes indicative £16.30p a share cash offer for Forth Ports; due diligence commences – statement.
- LVMH buys Bulgari for €3.7bn in shares — statement.
Snap news
Breaking pre-market news on Thursday,
- Secretary of State for Culture, Olympics, Media and Sport says he intends to approve News Corp bid for BSkyB — statement.
- Glencore announces 39% rise in full-year net income before exceptionals – statement.
Glencore’s floating ambitions
The Telegraph has become the latest observer to kick along speculation that Glencore is gearing up for a mega-float in the City, reporting on Tuesday that the secretive Swiss-based commodities trader is understood to be preparing for a £31bn City listing as early as next April.
Snap news
Breaking pre-market news on Tuesday,
- HSBC placing 6m Icap shares for chief executive Michael Spencer — statement.
- Tesco reports 3.6 per cent like-for-like sale growth in Q3 — statement.
- Xstrata to spend $23bn on new mines by 2016 — statement.
The new Xstrata? [updated]
JPMorgan’s hyperactive M&A banker Ian Hannam has been uncharacteristically quiet over the past few months.
And now we know why. He’s been working on a deal to create a “new London-listed resources champion”.
Xstrata’s iron-ore ambitions
A little bit of takeover tussle Down Under highlights the long-held ambitions of Anglo-Swiss miner Xstrata to add iron ore to its coal and metals-focused businesses.
Not only that, Xstrata’s hot pursuit
Snap news
Breaking pre-market news on Wednesday,
- Rio Tinto to invest further $3.1bn in Pilbara mine — statement.
- BHP Billiton loses local government backing for Potash bid — report.
- Home Retail benchmark pre-tax profit tumbles 23 per cent;
Snap news
Breaking pre-market news on Tuesday,
- Xstrata says condition for all-cash offer for Sphere Minerals satisfied – statement.
- RBS CEO Stephen Hester to present at banking conference – statement.
Snap news
Breaking pre-market news on Wednesday,
- Xstrata closes $4bn revolving credit facility — statement.
- Western Coal reaffirms intention to list on main market — statement.
- Redhall acquires Mount Engineering for £16.42m — statement.
Snap news
Breaking pre-market news on Thursday,
- Spice and Cinven in advanced discussions over a 70p a share cash offer – statement.
- Esprit H2 net profit down 19 per cent – statement.
- Swatch suing UBS over financial crisis losses,
Snap news
Breaking pre-market news on Tuesday,
- Rio Tinto and Chinese partner consider PotashCorp bid — report.
- Xstrata acquires Sphere Minerals for $383m — statement.
- WPP pre-tax profit down 16 per cent to £816m — statement and statement.
Snap news
Breaking pre-market news on Tuesday,
- ITV confirms move into pay-TV with Sky agreement — statement and statement.
- Xstrata operating Ebitda up 67 per cent to $4.494bn in first half — statement.
Snap news
Breaking pre-market news on Tuesday,
- BP reveals $17bn loss; $32.2bn pre-tax charge — statement and statement.
- Dudley takes BP helm; Hayward nominated for TNK-BP post — statement.
- Tomkins valued at £2.89bn in Pinafore acquisition — statement.
Julia’s big day: Mining tax metamorphosis
How relatively little it takes to please miners these days.
A 30 per cent tax on so-called super profits instead of a 40 per cent rate — when there was no suggestion of any ‘super profits’ tax just six months ago.
Snap news
Breaking pre-market news on Friday,
- BHP Billiton, Rio Tinto, Xstrata welcome revised Australia resource tax — statement.
- Sanofi-Aventis eyeing US acquisition worth $20bn — report.
- Chloride accepts 375p cash offer from Emerson — statement.
G’day, Gillard — not
London’s miners were in a fug on the FTSE 100 on Thursday:
And it’s because Australia’s proposed mining super-tax — unlike the prime minister who launched it — appears to be sticking round.
Kevin Rudd resigned on Thursday — but his successor,
Political risk, Aussie rules
Those are the London shares of Rio Tinto, BHP Billiton and Xstrata.
They all shot up despite a negative FTSE 100 at about 1300 UK BST on Wednesday — probably as this flash broke via Reuters:
RTRS-AUSTRALIA PM FACES LEADERSHIP VOTE ON THURSDAY MORNING – SKY TV
The link being:
Super-confusion on Australia’s mining super-tax
A possibly tiresome — but still important — update on the Australian government’s much-villified plan to impose a 40 per cent “resources super-profits tax” on mining companies:
Confusion reigns on Friday.