In a table:
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Just watching this with a sort of grim fascination…
Glencore stock was struggling (and failing) to hold above 108p at pixel, down 9.5 per cent. Read more
Banks have been pulling out of direct dealings in physical commodity markets ever since the Senate Report on Wall Street Bank involvement in the market outed a spree of systemic risks, competitive advantages and general concerns last November.
The question is, has this had any impact on commodity prices or even the ability of major commodity traders to get financing? Read more
You know how when you buy a brand new car and drive it back from the showroom, how it’s worth X per cent less by the time you get home?
Well, Ivan Glasenberg at Glencore Xstrata has worked out how to do the same thing with mining companies. Read more
We are talking here about Glenstrata, of course, going ex-Mick Davis and cum-Ivan Glasenberg as soon as the last bits of competition authority clearance arrive…
Ivan has already sent industry tongues a-wag with some off-the-grid comments at a BMO Capital Markets conference in Florida, as reported by Reuters:
What we’ve got to do, when the markets do get stronger, no need to keep building a new asset and let’s keep the market tight for a while…
Alternate working title: Opec-cartel style
We’ve already heard from Oleg Deripaska on the matter. And we’ve started to see the consequences hit Rio Tinto and BHP Billiton. But the latest “we must rein in supply” Opec-cartel style talk, actually emanates from Glencore CEO Ivan Glasenberg.
Final terms from Glencore in its hostile bid for Xstrata include this weird proposal:
In order to provide clarity on the issue of CEO succession, Mick Davis will become the Chief Executive Officer and executive director of the Combined Group on the Merger becoming effective but to step down within 6 months with Ivan Glasenberg becoming Chief Executive Officer of the Combined Group at that time.
Fierce statement out of Xstrata on Friday afternoon…
The Independent Directors of Xstrata plc have today written to Glencore International plc to request clarification of the outline proposal (the “Proposal”) provided to the Xstrata Board immediately prior to the Xstrata Court Meeting and New Xstrata General Meeting today in Switzerland. Read more
How do you price in the unwinding of a fantasy takeover bid?
That’s the challenge in the London mining sector as the promise of Glencore merging with its long-term associate Xstrata fades. Read more
It’s hard being listed, huh?
In his first television interview, Glasenberg said that Glencore took corporate responsibility seriously, saying: “We care about the environment. We care about the local communities.” Read more
The concept of Ivan Glasenberg on a charm offensive is hard to grasp. Charm is not generally considered one of the key characteristics needed to be a top trader, but he’s going to need all that he can find to push through the shotgun merger of Glencore, the business he built, with Xstrata. There’s an awful lot riding on this $90bn deal, not least the estimated $100m payday for those poor, starving investment bankers who are desperately trying to get it done.
Alas for Ivan, the omens look poor, thanks to an extraordinary blunder designed to save a relatively trivial amount of tax. The preferred route, a scheme of arrangement, escapes the stamp duty that would be payable in a conventional takeover. In a scheme, approval by 75% of shareholders who vote clinches the deal, but Glencore itself cannot vote its 34% shareholding in Xstrata. It needs a maximum of 16.5% of the shares to be voted against for the deal to fail. In practice, something like 12% against would probably scupper it, since not every share will be voted. Read more
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. The result was a high pressure sales pitch, a willing suspension of disbelief among investors, and a 530p launch price that’s never been reached since.
So what about the converse – if he’s buying, should I be selling? Ivan Glasenberg, the architect of today’s Glencore, clearly yearns to merge. It’s not yet a year since the botched flotation, but so keen is he that he’s yielded the posts of chairman, chief executive and finance director to Xstrata as the price of agreement. This is either a demonstration of what a warm-hearted, selfless individual he really is, or a tacit admission that Glencore’s years of making killings from commodity trading are coming to an end. Read more
Leading the FTSE 100 leaderboard on Monday morning, is Friday’s biggest faller.
Global commodities trader Glencore will close the books for its planned $11bn initial public offering on May 17, a day ahead of the original schedule, underscoring strong demand for the offer despite the recent downturn in commodity markets, reports Reuters. No reason was given for the early close in a term sheet seen by Thomson Reuters IFR on Friday. Sources previously told Reuters that order books were fully covered on the first day after strong interest from investors. Usually a decision to close books early is a sign of strong demand for the offer. On Thursday, Glencore CEO Ivan Glasenberg told a news conference the IPO had generated strong demand. The Telegraph reports that Kazakhstan’s key opposition figures have accused Glencore of illegally privatising assets worth up to $7.6bn amid fears the recent commodities sell off could hurt its valuation or force it to pull its $61bn flotation.
Ivan Glasenberg will become one of Europe’s richest men after Glencore’s initial public offering, as the value of his stake in the world’s largest commodities trader will surge to almost $10bn, reports the FT. The IPO prospectus – at more than 1,600 pages – on Wednesday revealed the ownership structure of privately-owned Glencore. Besides CEO Glasenberg, four other executives will become overnight billionaires and scores will be millionaires. Separately, the FT reports, Glencore priced its IPO on Wednesday at a level that will give it a valuation of $48bn to $58bn, less than the average forecast of $62bn by banks underwriting its flotation. With the issue of $7.9bn of new shares in the IPO, the company will have a market cap of $61bn, at the mid-point of the flotation range. The WSJ examines Glencore’s bumpy road to its IPO.
Ivan Glasenberg has broken a decade-long silence ahead of the launch of Glencore’s initial public offering this week, saying the IPO will give the world’s top commodities trader the financial firepower it needs amid consolidation in the sector. Glasenberg told the FT the IPO launch – the largest ever in London – was “imminent” after gaining strong support from big institutional investors. Glencore plans to sell a 20% stake worth about $10bn-$12bn, valuing the company at around $60bn, said bankers close to the deal, adding that relevant documents will be filed on Thursday. Glasenberg did not specify the day but said interest from cornerstone investors had been “a lot stronger” than expected. Lex notes the valuations touted by brokers seem sky-high but the reasons for listing are “down to earth”.