COMMODITIES HIT BY CRASH May 5, 2011 Commodity prices suffered a dramatic slump yesterday as oil fell below the psychologically important $100 a barrel mark in the US last night. The accelerating crash brought into sharp focus a commodity sell-off that has now spanned four days and has seen silver lose almost a quarter of its value. Investors scrabbled for other safe-haven [...]
Investors scrambling to snap up Glencore shares May 5, 2011 INVESTORS have snapped up the chance to buy a piece of Glencore, with the commodities giant reportedly seeing the book for its $60bn (£36.6bn) float fully covered on the first day yesterday. All $11bn worth of the trader’s shares on sale are said to be accounted for already, just a day after its 1,600-page prospectus [...]
Glencore five worth $23bn May 4, 2011 FIVE directors of Glencore, the world’s biggest commodities trader, will be turned into paper billionaires overnight when the firm floats on the London and Hong Kong Stock Exchanges in two weeks. Glencore’s hotly anticipated 1,600-page prospectus was unveiled yesterday, revealing for the first time the true extent of the fortunes amassed by its biggest players. [...]
Investors doubt growth prospects May 4, 2011 INVESTORS were struggling to digest Glencore’s 1,600 behemoth of a prospectus yesterday, with the doubters focusing on the key question that management will have to answer over the next two weeks: where’s the growth? One blue-chip investor told City A.M. that the firm’s profit forecasts are too modest and expressed concern about a medium-term commodities [...]
Prospectus reveals Glencore’s hybrid trader-miner model May 4, 2011 THE full extent of Glencore’s reliance on its trading arm was laid bare yesterday, revealing that 44 per cent of its operating profits come from “marketing activities” as opposed to “industrial activities”. The figure is key because many conventional commodities players are hesitant to invest in trading, a people business, rather than a business based [...]
High prices have stirred trader’s geopolitical risks May 4, 2011 GLENCORE has warned investors that it faces significant geopolitical risks that could materially impact its business, with “increased resource nationalism” due to high commodity prices flagged as a possible flashpoint. The company has endured repeated attacks on its corporate governance standards in the run-up to its float, with allegations that one of its subsidiaries has [...]
Glencore releases flotation value May 4, 2011 Commodities trading giant Glencore has priced its public offering at between 480p and 580p per share, giving it a valuation nearer to $45bn than the $83bn some banking advisers had estimated. Glencore, the world’s largest commodities trader, has been a private firm since its creation 37 years ago. Last month, Glencore announced the appointment of [...]
Glencore in float price climbdown May 3, 2011 ADVISERS to Glencore are set to price the shares in the group’s flotation at the bottom of the expected range. As the banks working on the deal gauged investor support for what is the London market’s biggest ever flotation, it became clear last night that the shares will be priced at a range that will [...]
GLENCORE PRICED AT BOTTOM OF THE RANGE May 3, 2011 ADVISERS to Glencore are set to price the shares in the group’s flotation at the bottom of the expected range. As the banks working on the deal gauged investor support for what is the London market’s biggest ever flotation, it became clear that the shares will be priced at a range that will value Glencore [...]
WHAT THE OTHER PAPERS SAY THIS MORNING April 27, 2011 FINANCIAL TIMES GLENCORE POISED FOR TAX BILL SURGE Glencore is facing a big increase in its tax bill following its $60bn initial public offering after paying almost no corporate taxes on its trading business for years in spite of bumper profits, according to the banks underwriting its $60bn listing. The pre-IPO research, by banks including [...]