Tuesday 29 September 2015 11:09 pm

Glencore share price slips back while reports suggest it held a secret meeting with investors


I write about energy and industrials for City A.M. I'm particularly interested in geopolitics, energy policy and, of course, the ever lively oil markets.

I write about energy and industrials for City A.M. I'm particularly interested in geopolitics, energy policy and, of course, the ever lively oil markets.

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Embattled Glencore reportedly held a secret meeting with an influential investor trade body yesterday, over the commodities miner and trader's £1.6bn share placing earlier this month.

A meeting took place between the Investment Association – whose members manage £5.5 trillion of client assets – and John Burton, Glencore's company secretary, according to Sky News.

The summit focused on concerns that shareholder pre-emption rights, which give existing shareholders the first refusal on any new share issue, were not applied to the share placing.

Read more: Glencore’s equity placing attacked for ignoring shareholders’ rights

The Investment Association and the National Association of Pension Funds previously issued a statement saying: "this sets a very damaging precedent for market practices."

Glencore's shares closed down 30 per cent yesterday over fears about how its debt-heavy balance sheet will hold up if copper prices fail to recover. But the shares sustained a relief rally this morning, popping more than nine per cent at the open, however they've since fallen back to 6.5 per cent.

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