Comments on: Why Glencore’s going public http://blogs.reuters.com/felix-salmon/2011/02/25/why-glencores-going-public/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: bklawyer http://blogs.reuters.com/felix-salmon/2011/02/25/why-glencores-going-public/comment-page-1/#comment-24371 Mon, 28 Feb 2011 01:54:40 +0000 http://blogs.reuters.com/felix-salmon/?p=7445#comment-24371 I believe that a impetus for Glencore going public is that many of its senior executives are scheduled to retire in the next few years. Glencore typically repurchases the equity of people leaving the company. Making the repurchases necessary to repurchase the equity of these senior leaders would be a significant drain on Glencore. While Glencore could manage these payments, going public should allow the retiring senior executives to retain their equity – and prevent the need to purchase the shares. Of course, this motivation supplements the others mentioned above.

Glencore definitely has internal lawyers now, although that may be just another preparation for the IPO.

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By: AMusnikow http://blogs.reuters.com/felix-salmon/2011/02/25/why-glencores-going-public/comment-page-1/#comment-24362 Sat, 26 Feb 2011 20:47:33 +0000 http://blogs.reuters.com/felix-salmon/?p=7445#comment-24362 The “Reuters report on Glencore” says, “Glencore’s network of 2,000 traders, lawyers….”
At one time Glencore prided itself on NOT having in-house lawyers. Is Reuters considering outside law firms when it implies that Glencore’s network includes a significant number of lawyers.

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By: ottorock http://blogs.reuters.com/felix-salmon/2011/02/25/why-glencores-going-public/comment-page-1/#comment-24332 Fri, 25 Feb 2011 20:29:13 +0000 http://blogs.reuters.com/felix-salmon/?p=7445#comment-24332 So you write this…

“Betting on commodities is all well and good, but it’s not the same as investing in the economic growth of a country.”

…just two days after lauding the wonderfulness of Peru’s economic growth.

http://blogs.reuters.com/felix-salmon/20 11/02/23/dsk-ppk-wtf/

“…Peru has performed stunningly well through the global financial crisis, growing at 8% in 2006, 9% in 2007, 10% in 2008, and then bouncing back to 9% growth in 2010 after modest-but-still-positive growth of 1% in the worst crisis year of 2009…”

To take a snippet from your own title line. Salmon, “WTF”? Next you’ll be telling us that Peru’s growth isn’t due to the zoom in commods prices.

And BTW, i can’t wait to see the lid off the black box that’s Glencore, either.

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By: Felix Salmon http://blogs.reuters.com/felix-salmon/2011/02/25/why-glencores-going-public/comment-page-1/#comment-24331 Fri, 25 Feb 2011 20:27:08 +0000 http://blogs.reuters.com/felix-salmon/?p=7445#comment-24331 @right Thanks! Fixed.

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By: right http://blogs.reuters.com/felix-salmon/2011/02/25/why-glencores-going-public/comment-page-1/#comment-24327 Fri, 25 Feb 2011 17:54:28 +0000 http://blogs.reuters.com/felix-salmon/?p=7445#comment-24327 Typo: In the last sentence you write “The Cargill IPO…” when I believe you mean “The Glencore IPO…”

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2011/02/25/why-glencores-going-public/comment-page-1/#comment-24326 Fri, 25 Feb 2011 17:48:56 +0000 http://blogs.reuters.com/felix-salmon/?p=7445#comment-24326 My take on why they are going public is that since they are speculators, they would rather speculate with other people’s money. Sure, companies can always raise capital privately, but it is nowhere near the amount a big company can generate on a public market. And then they can pay themsleves giant bonuses every year, regardless of their shareholders’ compensation. And if they lose their bets, oh well, tomorrow’s another day.

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By: TFF http://blogs.reuters.com/felix-salmon/2011/02/25/why-glencores-going-public/comment-page-1/#comment-24324 Fri, 25 Feb 2011 16:17:47 +0000 http://blogs.reuters.com/felix-salmon/?p=7445#comment-24324 Simple solution — if you don’t want a third of your money invested in mining/commodities companies, then CHOOSE YOUR OWN COMPANIES. This is part of why index investing (or investing in “mainstream mutual funds” that essentially track indexes at a higher cost) is intellectually bankrupt. There is no particular reason why any individual should WANT to be investing in every sector according to their arbitrary proportion of the market.

I’m invested in a few Brit ADRs, only one of them a resource/mining company. Surely it can’t be so difficult for British investors to do the same?

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By: arrgh http://blogs.reuters.com/felix-salmon/2011/02/25/why-glencores-going-public/comment-page-1/#comment-24323 Fri, 25 Feb 2011 16:16:40 +0000 http://blogs.reuters.com/felix-salmon/?p=7445#comment-24323 “The deal will also mean a huge uptick in the wealth of Glencore’s partners . . ”

i think that sums it up nicely. these guys know their business and its future prospects better than anyone. that they are selling out seems to indicate a top in commodities in near

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