GLASENBERG GOES ON TOUR February 12, 2012 GLENCORE chief executive Ivan Glasenberg is said to be preparing to join the roadshow to persuade investors to back the planned merger of Glencore with rival miner Xstrata. Glasenberg’s intervention could be necessary to get the deal through after a fifth major shareholder came out against the tie-up on Friday on the grounds that the [...]
BarCap wins accreditation on Xstrata February 9, 2012 BARCLAYS Capital was yesterday granted accreditation from Thomson Reuters for its role as an investment banking adviser to Xstrata in its £56bn merger deal with Glencore. Its inclusion as an adviser is massively important to the bank, elevating it from eighth to sixth place in the Thomson Reuters M&A league table, as it seeks eventual [...]
Third Xstrata shareholder opposes Glencore merger February 9, 2012 A THIRD prominent shareholder in Xstrata has come out against the miner’s £56bn mega-merger with commodities trader Glencore. Chad Deakins, a fund manager with RidgeWorth, a US-based investment company, told Bloomberg that the effective eight per cent premium implied in the share swap ratio for the deal significantly undervalues Xstrata. “Xstrata is a prized asset,” [...]
FTSE up as Greek endgame arrives February 9, 2012 The FTSE 100 crawled up this morning as investors braced themselves for an expected decision on a Greek debt deal and the prospect of the Bank of England pumping in another £50bn into its quantitative easing programme. Greek officials said pension cuts were the sticking point in talks which have lurched from one crisis point [...]
BarCap’s role in £56bn deal is challenged February 8, 2012 BARCLAYS Capital’s last-minute inclusion in the adviser list for the Glencore-Xstrata merger, which has lifted its place in the Thomson Reuters league table for M&A worldwide, has been challenged by one of its rivals. Thomson Reuters, which has lifted BarCap from eighth to sixth following the bank’s declaration that it is an adviser on the [...]
Miners buoy FTSE as Greece remains on knife edge February 8, 2012 The FTSE 100 opened on the front foot this morning as investors continued to cling onto hopes that Greece could be steered away from financial meltdown. Greek party leaders were set to meet again today to hammer out a reform deal in return for the new €130bn rescue from the IMF and EU. Leaders of [...]
BHP profits slip on weaker commodity prices February 8, 2012 BHP Billiton, the world’s biggest miner, reported a rare fall in earnings, hurt by labour battles and weaker commodity prices, but the result showed it was still in a different league from its would-be rival: Glencore-Xstrata. Despite the six per cent drop in half-year profit to $9.94bn (£6.24bn), BHP made more cash profit in six [...]
Glencore faces sweetener call February 7, 2012 Glencore could be forced to boost its offer for Xstrata after two of the miner’s top shareholders said they would refuse to vote in favour of the £56bn merger. The two commodities giants unveiled a deal yesterday that would see Glencore shareholders pay an effective premium of 15.2 per cent on Xstrata’s pre-deal share price [...]
Glencore’s deal with Xstrata faces long road to clearance February 7, 2012 GLENCORE and Xstrata’s $90bn (£57bn) merger faces a long road to reach regulatory and competition clearance. While bigger commodities tie-ins have been cleared in the past – such as the deals that formed Rio Tinto and BHP Billiton – merging a clearing house with a miner could encounter new hurdles, analysts said yesterday after the [...]
ADVISERS ON THE UK’S MEGA-MERGER February 7, 2012 Barclays Capital was a last minute entrant onto the adviser list, City A.M. learned yesterday. The Bob Diamond-led bank, which made it onto the Facebook IPO, declined to comment last night. BarCap’s inclusion came late on Monday night as the final touches were being put to the deal. Inclusion will help it maintain progress in [...]