Monday, September 30, 2013

Former Xstrata Chief Returns to Haunt Glencore (GLEN)

From City AM:

Davis returns to haunt Glencore with $3bn miner 
FORMER Xstrata chief executive Mick Davis reinforced his comeback into the mining sector yesterday, with the announcement that his new mining venture has raised $1bn (£618m).

Private equity firm TPG and commodities trading house Noble have invested $500m each in X2 Resources, which aims “to create a new mid-tier diversified mining and metals group by…identifying and acquiring assets and businesses at an opportune time in the cycle”.

Noble will be X2’s preferred marketer and provider of supply chain management and logistics services.

South African-born Davis left Xstrata with a £15m payout at the time of its mega-merger with commodities trader Glencore in May. An array of his ex-Xstrata colleagues form the executive team at X2, including former finance chief Trevor Reid and Andrew Latham, previously head of group business development....MORE