Glencore barred from bid for miner
Glencore, the world’s largest diversified commodities trader, said yesterday that comments to analysts and reporters during its maiden quarterly results presentation on Tuesday had subjected it to an article in UK takeover rules – rule 2.8 – which will restrict any move on ENRC.
Rule 2.8 of the takeover code applies where a company has made a statement that it does not intend to make an offer and means the company may not, unless there is a material change in circumstances, make a move on the target company for six months.
Advertisement
Hide AdAdvertisement
Hide AdGlencore, which listed in part to gain firepower for larger acquisitions, has been seen as a potential catalyst for the return of large-scale deals to the sector.
“Glencore monitors a wide range of opportunities in the sector and will continue to do so,” said chief executive Ivan Glasenberg.
“However, we can confirm that although we talk to a lot of people in the sector, we are not actively considering a bid for ENRC.”
Earlier this week Glencore missed forecasts despite posting a dramatic 45 per cent jump in first-quarter earnings, after its metals trading unit was hit by a drop in Japanese demand and lower volatility.
Advertisement
Hide AdAdvertisement
Hide AdAnalyst Tim Dudley, at Collins Stewart, said: “It was a strong quarter, but if you look at the consensus numbers, they are going to have to have stronger quarters for the rest of the year to deliver on those estimates. The forecasts in the market at the time of the IPO were quite aggressive.”