Quentin's Feed
Mar 13, 2011

Slim mining margins may cloud Glencore’s IPO value

LONDON (Reuters) – Slim margins at Glencore’s GLEN.UL mines and smelters could hamper the Swiss commodity giant’s efforts to attain a premium valuation from a planned multi-billion-dollar listing.

The narrow ratios contrast with better overall margins than its nearest listed rival, Noble Group (NOBG.SI: Quote, Profile, Research), and further muddy the picture for prospective investors weighing up a firm that is a mixture of trader, miner and investor.

Mar 6, 2011

Glencore chooses Rodney Chase for chairman – report

LONDON (Reuters) – Commodities giant Glencore has lined up one-time BP executive Rodney Chase as chairman as it prepares for a possible $60 billion float, the Sunday Times reported.

The newspaper said, citing sources close to the situation, that Chase had agreed in principle but had not been formally appointed. It said the other final candidate, former trade minister Lord Davies, had turned the offer down.

Mar 6, 2011

Glencore fee bonanza may elude Xstrata confidants

LONDON (Reuters) – Ties to Swiss miner Xstrata (XTA.L: Quote, Profile, Research, Stock Buzz) may exclude Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz) and JPMorgan (JPM.N: Quote, Profile, Research, Stock Buzz) from the $300-$400 million in fees that a listing of Xstrata’s part-owner Glencore could yield.

A standoff between Glencore Chief Executive Ivan Glasenberg and Xstrata’s Mick Davis — who has called on JPMorgan’s Ian Hannam and Brett Olsher, formerly of Deutsche Bank, for a string of deals — could force banks to take sides.

Mar 4, 2011

Exclusive: Elliott hires search firm for Actelion board

ZURICH/LONDON (Reuters) – Activist hedge fund Elliott Advisors has hired headhunters to find candidates for the board of Actelion (ATLN.VX: Quote, Profile, Research, Stock Buzz), sources said, as part of its bid to make Europe’s biggest biotech firm consider selling itself.

The sources familiar with the situation said New York-based Elliott, which is dissatisfied with the company’s performance after a series of product setbacks, is also using Georgeson, a firm of proxy solicitors, to secure support from other shareholders.

Mar 4, 2011

Ivan Glasenberg’s long walk to Glencore gold

LONDON, March 4 (Reuters) – As head of the world’s largest
commodity trader, Ivan Glasenberg knows everything has a price,
even his own closely guarded privacy.

Glencore’s [GLEN.UL] decision to end years of secrecy with a
policy of “Glasnost” ahead of a possible initial public offering
(IPO) puts the publicity-shy 54-year-old fully in the limelight.

Mar 3, 2011

Glencore profit jumps on higher commodity prices

LONDON, March 3 (Reuters) – Glencore [GLEN.UL], the world’s
largest commodity trader, posted a jump in 2010 profit and
promised a robust 2011, strengthening its hand for a possible
stock market listing that could value it at about $60 billion.

Net profit at the privately held trading, mining and
resource investment conglomerate rose 40 percent to $3.8
billion, boosted by higher prices for metals and agricultural
products, while revenue rose 36 percent to $145 billion.

Mar 2, 2011

PPL to buy E.ON networks for £3.5 billion pounds – source

LONDON/NEW YORK (Reuters) – U.S. power firm PPL Corp (PPL.N: Quote, Profile, Research) has agreed to buy German utility E.ON AG’s (EONGn.DE: Quote, Profile, Research) UK power networks for 3.5 billion pounds in cash, a person familiar with the matter said on Tuesday.

PPL, which beat its main rival, Hong Kong billionaire Li Ka-Shing, in the race for E.ON’s networks, would also assume 500 million pounds in debt, the person said.

Mar 2, 2011

PPL to buy E.ON networks for $5.7 billion: source

LONDON/NEW YORK (Reuters) – U.S. power firm PPL Corp (PPL.N: Quote, Profile, Research, Stock Buzz) has agreed to buy German utility E.ON AG’s (EONGn.DE: Quote, Profile, Research, Stock Buzz) UK power networks for 3.5 billion pounds ($5.7 billion) in cash, a person familiar with the matter said on Tuesday.

PPL, which beat its main rival, Hong Kong billionaire Li Ka-Shing, in the race for E.ON’s networks, would also assume 500 million pounds in debt, the person said.

Mar 2, 2011

PPL to buy E.ON networks for 3.5 bln pounds-source

LONDON/NEW YORK, March 1 (Reuters) – U.S. power firm PPL
Corp (PPL.N: Quote, Profile, Research, Stock Buzz) has agreed to buy German utility E.ON AG’s
(EONGn.DE: Quote, Profile, Research, Stock Buzz) UK power networks for 3.5 billion pounds in cash, a
person familiar with the matter said on Tuesday.

PPL, which beat its main rival, Hong Kong billionaire Li
Ka-Shing, in the race for E.ON’s networks, would also assume
500 million pounds in debt, the person said.

Mar 1, 2011

PPL nears deal to buy E.ON’s UK grids – source

LONDON/NEW YORK (Reuters) – U.S. power firm PPL Corp (PPL.N: Quote, Profile, Research) is close to buying German utility E.ON AG’s (EONGn.DE: Quote, Profile, Research) UK power networks, beating its main rival, Hong Kong billionaire Li Ka-Shing, a person familiar with the matter said.

The person added that a deal, which would leave PPL with about 7.5 million customers in Britain, could be announced this week. PPL beat Li, who was seeking to add the country’s second-biggest electricity distribution network to the largest, which he bought last year from EDF of France.

    • About Quentin

      "Quentin Webb is a Reuters Breakingviews columnist, covering mergers and acquisitions, corporate finance and private equity. He is based in London. Before becoming a columnist, he was a news reporter for Reuters, where he was most recently European M&A correspondent. He has also worked as a correspondent in Brussels and as a credit-markets reporter. He joined Reuters in 2003 from Legalease, a legal publisher. He has a first-class degree in psychology from University College London."
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