FTSE led down by scandal-hit Barclays June 28, 2012 The FTSE 100 slipped this morning as miners dipped and Barclays was dented by the Libor scandal while it was confirmed that the UK had lurched back into recession. Britain’s economy shrank by 0.3 per cent during the first three months of this year, official data confirmed, leaving the nation in its second recession in [...]
Glencore and Xstrata race to repair merger June 27, 2012 GLENCORE’S merger with Xstrata was on the rocks yesterday as the two firms scrambled to appease irate investors over the share ratio and pay packages linked to the deal. Mining group Xstrata yesterday rewrote its bonus rules for top staff to try and soothe shareholder anger at a £173m payday if the deal goes through, [...]
Ultimatum is the name of the game if you aren’t playing fair June 27, 2012 WHAT are Xstrata’s shareholders playing at? The answer seems to be a game called Ultimatum. It’s a simple experiment that shows why shareholders can’t be relied on to accept that any deal is better than none. Here’s how Ultimatum works. Player G is told he can have £100. He has the option to give an [...]
Boosted by bank and commodity stocks, FTSE breaks its losing run June 27, 2012 BRITAIN’S leading shares bounced back yesterday, snapping a four-session losing streak, with commodity and banking stocks squeezed higher as worries over the global growth outlook were eased by some upbeat US data. Volumes were again low, however, as most investors preferred to remain on the sidelines ahead of a crucial European summit. The FTSE 100 [...]
Banks fuel FTSE gains but Eurozone picture darkens June 27, 2012 Banks fuelled modest gains on the FTSE 100 in early trading but investor confidence remained weak overall as the Eurozone’s leaders failed to offer any evidence of a path to recovery for the bloc. Disagreements between the region’s policymakers over how to deal with the turmoil are weighing on investors’ confidence ahead of a European [...]
Glencore and Xstrata under fresh pressure to alter deal June 26, 2012 GLENCORE and Xstrata look likely to overhaul their $65bn mega-merger after another prominent shareholder demanded they alter the terms of the deal last night. Executives at the commodities firms were already seeking to rejig pay packages linked to the tie-up when the Qatar Investment Authority broke cover to seek a better deal for its 11 [...]
Glencore may force Davis out June 25, 2012 ONE OF Xstrata’s most prominent investors has turned up the pressure on chief exec Mick Davis, warning that he could be forced to resign as part of the tie-up with Glencore. Standard Life head of equities David Cummings, who has spoken out against the deal, told the BBC that “to preserve the integrity of the [...]
Xstrata under fire for merger bonus package June 21, 2012 XSTRATA urged investors to focus on the business merits of its mega-merger with Glencore yesterday after an influential investor group issued its most severe warning against the firm’s huge pay packages for top staff. The Association of British Insurers issued a “red top” warning against retention payments promised to directors at Xstrata if the merger [...]
Silence isn’t necessarily golden, but the handcuffs are June 21, 2012 CAN Invensys blame the market for not entirely believing the engineer’s belated assurances yesterday that “there are no other discussions taking place in relation to an offer for the group”? On Wednesday, the British firm’s shares soared by more than a quarter, but the firm stubbornly refused to comment on this extreme price action. Its [...]
FTSE down as rally fizzles out June 18, 2012 The FTSE enjoyed a brief rally this morning – but all the gains were wiped out by 9.30am. The index had opened up 1.3 per cent, driven by strong performance from banks and commodity stocks as investors welcomed the result of Sunday’s Greek election. A narrow victory by pro-bailout parties over radical leftists had eased [...]