JUST PR sp in

Finweek English Edition - - SIMON SAYS -

Glen­core has an­nounced that it plans to un­bun­dle its 23.9% stake in plat­inum miner Lon­min. That’s not re­ally a sur­prise but it does raise a few is­sues, chiefly that Glen­core is seem­ingly un­able to sell the stake. Sell­ing on mar­ket would not be pos­si­ble as it is sim­ply too large so it would need a large buyer to buy the block, and no­body wanted it. Glen­core share­hold­ers will also now be stuck with Lon­min shares − small un­eco­nomic stakes, in many cases. This is pass­ing the buck, but it is also po­ten­tially go­ing to hurt Lon­min share­hold­ers as many of those re­ceiv­ing their Lon­min shares will sell them, which will cre­ate mas­sive sell­ing pres­sure and hence price weak­ness. Now, sure, Glen­core di­rec­tors have been quoted say­ing that they will be hold­ing onto their Lon­min stakes, but in truth that’s PR spin.

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