Glencore More Likely to Target Anglo Than Rio Tinto: Jefferies
2014-09-22 06:17:58.700 GMT
By Tim Barwell
Sept. 22 (Bloomberg) -- If Glencore shares outperform,
could use its equity for an acquisition next year; friendly
merger with Anglo possible if iron ore prices fall further,
Amplats restructuring fails, Jefferies says in note.
* Jefferies (outperform): If iron ore prices plummet (to the
$60s) and don’t recover, a merger with Rio is a remote
possibility, though nil-premium all-equity deal with Rio
would probably be impossible
* Expects ongoing buyback, another likely $1b+
announcement in Feb. to enhance outperformance of
Glencore shares over next 6-12 months
* Says marketing business has proven to be cyclically
resilient, shown by Ebit growth from 2012
* NOTE: Glencore purchase of Rio Tinto has ‘compelling’ logic,
Bernstein said Sept. 15
* NOTE: Glencore may bid for Anglo American in 2015, Jefferies
said Sept. 3
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To contact the reporter on this story:
Tim Barwell in London at +44-20-7073-3512 or
tbarwell@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Andrew Rummer
2014-09-22 06:17:58.700 GMT
By Tim Barwell
Sept. 22 (Bloomberg) -- If Glencore shares outperform,
could use its equity for an acquisition next year; friendly
merger with Anglo possible if iron ore prices fall further,
Amplats restructuring fails, Jefferies says in note.
* Jefferies (outperform): If iron ore prices plummet (to the
$60s) and don’t recover, a merger with Rio is a remote
possibility, though nil-premium all-equity deal with Rio
would probably be impossible
* Expects ongoing buyback, another likely $1b+
announcement in Feb. to enhance outperformance of
Glencore shares over next 6-12 months
* Says marketing business has proven to be cyclically
resilient, shown by Ebit growth from 2012
* NOTE: Glencore purchase of Rio Tinto has ‘compelling’ logic,
Bernstein said Sept. 15
* NOTE: Glencore may bid for Anglo American in 2015, Jefferies
said Sept. 3
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Tim Barwell in London at +44-20-7073-3512 or
tbarwell@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Andrew Rummer