Tuesday, April 5, 2011

"Funds threaten Glencore IPO over price"

I owe someone a hat tip on this, if you sent it drop us another line and we'll link.
The $60 Billion figure is definitely at the high end of the valuation chatter.*
From The Australian:
SOME leading fund managers are threatening to snub the flotation of Glencore if the Swiss commodities trader pushes for a mooted $US60 billion ($58bn) valuation. 
While most potential investors have yet to see a detailed financial valuation of Glencore, several big City fund managers, whose support will be crucial to the success of a London listing, fear the company will seek a top-notch value.

"It is clearly happening. The issue is how you value the business. We are going to struggle to get there based on the valuations circulated so far," one large investor said. "Clearly, we need to see the prospectus, but it may be that this will not be one for us."

Another said: "Buying Glencore will be a clear valuation call. As it stands, there will be lots of people who won't go near it."

Investors' concern over the flotation came as The Times revealed yesterday that Glencore had paid its most senior directors $US146 million last year, with a further $US938m given in performance-related shares. This remuneration package dwarfs the sums received by even the best-paid City of London bankers....MORE
*Commodities: A Glencore London float could value group at £30 billion plus
Glencore IPO End Game Nears, Could Be Worth an Average $250 Million to Top Staffers