Glencore offers no Xstrata clues as profit falls
Commodities trader Glencore stuck to its guns on a $30bn (£19bn) bid for miner Xstrata today, as it reported earnings for the first half of 2012 dragged down 26 per cent by weaker commodity prices.
Glencore said its first half profit net of significant items fell to $1.81bn, down from $2.44bn a year ago and marginally above analysts’ expectations of $1.6bn, according to consensus forecasts.
Its operating profit fell 24 per cent to almost $2.51bn, again topping forecasts.
Glencore, already the single largest shareholder in Xstrata with a 34 per cent stake, announced in February it would bid for the stock it does not already own, offering 2.8 new shares for every Xstrata share held. It has met with resistance, however, from Qatar Holding, Xstrata’s second-largest investor, which in June demanded a ratio of 3.25.