Glencore woos investors with promise of aggressive cuts
Glencore Xstrata told investors it would return excess cash, slash costs and might sell unwanted assets, raising expectations it would easily exceed planned synergies of $500 million from the deal that created the new group. Unveiling a management team packed with veteran Glencore executives, the group promised to “cut bureaucracy and duplication”, vowing it would reduce administrative staff, cut divisional offices and underperforming projects to ensure success even at a time of cooling commodity prices. Mining mega-deals have had a mixed record of success at best over the past decade, but a day after Glencore sealed the acquisition of Xstrata, the biggest ever takeover in the sector, its shares soared 6 percent, helped by a jump in the copper price. At current prices the group is worth $73 billion.
See http://www.mineweb.com/mineweb/content/en/mineweb-mining-finance-investment-old?oid=188783&sn=Detail.
Big Mick Davis and Goldman Sachs building takeover war chest
Mick Davis, outgoing CEO of Xstrata post the $76 billion takeover by commodities traders Glencore, is already building an acquisitions war chest. At the outset of what was then a merger negotiation 15 months ago, Davis was put forward as the leader of the combined group, but in a deal with the Qatari sovereign wealth fund to save the deal from collapse, Glencore CEO Ivan Glasenberg secured the top post for himself. Davis is expected to stay on for a few months, but FT.com reports he has hired Goldman Sachs to help him raise a new fund that will buy stakes in mining assets.
See http://www.mining.com/big-mick-davis-and-goldman-sachs-readying-takeover-war-chest-34362/?utm_source=digest-en-mining-130506&utm_medium=email&utm_campaign=digest.