Glen­core shares soar fol­low­ing talks of unit sale

The China Post - - BUSINESS INDEX & -

Shares in min­ing gi­ant Glen­core soared in af­ter­noon trade Mon­day in Hong Kong fol­low­ing re­ports of talks on selling its agri­cul­ture busi­ness, but the firm said it was un­aware why its stock had risen so sharply.

Shares were up 19.63 per­cent in late af­ter­noon trad­ing af­ter shoot­ing 72 per­cent higher at one point.

Sin­ga­pore’s sov­er­eign wealth fund, Ja­panese trad­ing house Mit­sui & Co., and a Cana­dian pen­sion fund are among po­ten­tial buy­ers of the unit, Bloomberg News re­ported last week.

The agri­cul­tural unit could be worth US$10 bil­lion, ac­cord­ing to re­search cited by Bloomberg News.

How­ever, Glen­core said in a state­ment to the Hong Kong Stock Ex­change it did not know of spe­cific rea­sons for the jump.

“The Board con­firms that it is not aware of any rea­sons for these price and vol­ume move­ments or of any in­for­ma­tion which must be an­nounced to avoid a false mar­ket in the Com­pany’s se­cu­ri­ties,” the state­ment said.

Shares in the Swiss-based firm fluc­tu­ated wildly last week amid in­vestor fears that sink­ing com­mod­ity prices would af­fect its abil­ity to meet out­stand­ing debt obli­ga­tions.

The firm plunged in trad­ing last week af­ter bro­ker­age Investec ques­tioned its fu­ture if com­mod­ity prices — which are wal­low­ing at multi-year lows ow­ing to weak de­mand from a slow­ing China — fail to re­cover soon.

Most re­sources-linked firms have taken a hit in re­cent months as the price of cop­per, alu­minium, iron ore and oil have tum­bled.

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