Extracting value at more dynamic Glencore
The commodities giant could take the ‘self-help’ route to unlocking shareholder value as coal prices sag
Investment analysts attempting to parse the comments of Glencore’s fast-talking CEO Gary Nagle at the year-end results presentation in February had much to ponder. Listening to Nagle, the company was trucking along contentedly. Beneath the surface, however, analysts detected Glencore was wrestling with the market’s relatively low appreciation of its value.
They pointed to three factors. The first was Glencore’s meeting with rival miner Rio Tinto last year to discuss mergers & acquisitions (M&A). Since neither company has commented on the speculation it’s impossible to say what was planned, but according to Deutsche Bank, the talks implied Glencore might consider radical portfolio changes...
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