Glencore approached by bankers offering to finance offer for Bunge - reports
06 AUG 2017
Glencore [LON:GLEN], a Switzerland-based commodities trader, has been sounded out by several banks offering financing for a takeover bid for the White Plains, New York-based agricultural commodities group Bunge Limited[NYSE:BG], The Mail on Sunday reported. The newspaper cited senior City sources for the information.
Glencore disclosed in May that it had approached Bunge informally about a potential takeover offer.
Bunge has said it was not talking to Glencore about a deal, the item added.
The banks offering financing may be hoping to win advisory mandates on a renewed offer for Bunge, the report continued.
Whether Glencore has formally hired any banks as advisers remains unclear, the item said. However, it is understood that Bunge has hired banks to advise on a defence against any hostile offer from Glencore, the article added.
Glencore is thought unlikely to make a formal takeover bid until the summer is over, the newspaper said.
The Sunday Times’ Agenda column noted market speculation that Glencore chief executive Ivan Glasenberg is still interested in a deal with Bunge. The report did not cite a source.
Bunge’s market capitalisation stood at USD 10.73bn (EUR 9.11bn) at the close of trading in New York on Friday, 4 August.
Background:
A Bloomberg Markets report on 2 August quoted Bunge chief executive Soren Schroder, who said the company was willing to consider opportunities for consolidation. Schroder added however that he would prefer to enter into regional partnerships for Bunge’s assets, such as its ports.
A Financial Times report on 5 June said Bunge had hired the investment bank JPMorgan Chase and the law firm Shearman & Sterling to advise on a defence against a potential offer from Glencore.