Rio May Not See Much Value From Possible Glencore Deal: Clarkson
2014-10-06 17:06:42.107 GMT
By Aoyon Ashraf
Oct. 6 (Bloomberg) -- Rio would have to overcome “too
many” obstacles to see any added value from potential tie-up
with Glencore, Clarkson capital analyst Jeremy Sussman writes.
* Biggest obstacle is RIO’s valuation vs iron ore pricing as
shrs down more vs commodity price YTD; although possible
deal would make strategic sense
* RIO ADRs gave off early gain of as much as 21%, up 8.1%
after earlier report of Glencore’s potential deal with RIO
* NOTE: Sept. 15, Glencore Purchase of Rio Tinto Has
‘Compelling’ Logic: Bernstein
Link to Company News:GLEN LN <Equity> CN <GO>
Link to Company News:RIO LN <Equity> CN <GO>
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
--With assistance from Arie Shapira in New York.
To contact the reporter on this story:
Aoyon Ashraf in Toronto at +1-416-203-5713 or
aashraf7@bloomberg.net
To contact the editor responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
2014-10-06 17:06:42.107 GMT
By Aoyon Ashraf
Oct. 6 (Bloomberg) -- Rio would have to overcome “too
many” obstacles to see any added value from potential tie-up
with Glencore, Clarkson capital analyst Jeremy Sussman writes.
* Biggest obstacle is RIO’s valuation vs iron ore pricing as
shrs down more vs commodity price YTD; although possible
deal would make strategic sense
* RIO ADRs gave off early gain of as much as 21%, up 8.1%
after earlier report of Glencore’s potential deal with RIO
* NOTE: Sept. 15, Glencore Purchase of Rio Tinto Has
‘Compelling’ Logic: Bernstein
Link to Company News:GLEN LN <Equity> CN <GO>
Link to Company News:RIO LN <Equity> CN <GO>
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
--With assistance from Arie Shapira in New York.
To contact the reporter on this story:
Aoyon Ashraf in Toronto at +1-416-203-5713 or
aashraf7@bloomberg.net
To contact the editor responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net