Glencore billionaire club loses half its members as stock dives
2015-08-20 06:12:47.87 GMT
By Javier Blas and Jesse Riseborough
Aug. 20 (Sydney Morning Herald) --
Glasenberg unable to 'read China' as Glencore slumps to
huge loss
Mining company Glencore's sharemarket float minted six
billionaires in 2011, with Ivan Glasenberg and five other
executives together controlling stakes worth $24 billion ($32.7
billion).
Today, only three remain in the elite club -- based on the
value of their holdings in the company -- and two of those are
on the brink of losing their status after the shares of the
leading commodity trader lost 70 per cent since the IPO.
The May 2011 offering generated more wealth than the IPOs
of some of Wall Street's most prominent firms, including
Goldman Sachs Group in 1999. Since then, Glencore's share price
has fallen every year, a decline that's accelerated in recent
months as concern China's economy is slowing has seen commodity
prices plunge.
Glencore dropped 9.7 per cent in London to close at a
record low on Wednesday after the company reported a 56 percent
drop in first-half profit.
Chief executive Glasenberg remains an undisputed
billionaire, but the value of his stake has dropped from $US9.4
billion in May 2011 to $US2.8 billion now, according to
Bloomberg estimates based on public data.
His colleagues have fared worse: the stakes controlled by
Tor Peterson, head of coal, Alex Beard, head of oil, and Gary
Fegel, the former head of aluminium who left Glencore in 2013,
are each worth less than $US1 billion today.
Daniel Mate, head of zinc, and Telis Mistakidis, head of
copper, are just above the billionaire line, with stakes worth
$US1.04 billion and $US1.03 billion, respectively, down from
about $US3.6 billion four years ago. If the shares drop another
five per cent, they will become multi-millionaires.
Glasenberg and some of his executives have bought more
shares over the years, re-investing their dividends.
Glencore declined to comment on the wealth of its
directors.
Bloomberg News
Click here to see the story as it appeared on Sydney Morning
Herald web site.
The Sydney Morning Herald
Copyright © (2015) Fairfax Media Publications Pty Limited.
www.smh.com.au. Not available for re-distribution.
-0- Aug/20/2015 06:12 GMT
2015-08-20 06:12:47.87 GMT
By Javier Blas and Jesse Riseborough
Aug. 20 (Sydney Morning Herald) --
Glasenberg unable to 'read China' as Glencore slumps to
huge loss
Mining company Glencore's sharemarket float minted six
billionaires in 2011, with Ivan Glasenberg and five other
executives together controlling stakes worth $24 billion ($32.7
billion).
Today, only three remain in the elite club -- based on the
value of their holdings in the company -- and two of those are
on the brink of losing their status after the shares of the
leading commodity trader lost 70 per cent since the IPO.
The May 2011 offering generated more wealth than the IPOs
of some of Wall Street's most prominent firms, including
Goldman Sachs Group in 1999. Since then, Glencore's share price
has fallen every year, a decline that's accelerated in recent
months as concern China's economy is slowing has seen commodity
prices plunge.
Glencore dropped 9.7 per cent in London to close at a
record low on Wednesday after the company reported a 56 percent
drop in first-half profit.
Chief executive Glasenberg remains an undisputed
billionaire, but the value of his stake has dropped from $US9.4
billion in May 2011 to $US2.8 billion now, according to
Bloomberg estimates based on public data.
His colleagues have fared worse: the stakes controlled by
Tor Peterson, head of coal, Alex Beard, head of oil, and Gary
Fegel, the former head of aluminium who left Glencore in 2013,
are each worth less than $US1 billion today.
Daniel Mate, head of zinc, and Telis Mistakidis, head of
copper, are just above the billionaire line, with stakes worth
$US1.04 billion and $US1.03 billion, respectively, down from
about $US3.6 billion four years ago. If the shares drop another
five per cent, they will become multi-millionaires.
Glasenberg and some of his executives have bought more
shares over the years, re-investing their dividends.
Glencore declined to comment on the wealth of its
directors.
Bloomberg News
Click here to see the story as it appeared on Sydney Morning
Herald web site.
The Sydney Morning Herald
Copyright © (2015) Fairfax Media Publications Pty Limited.
www.smh.com.au. Not available for re-distribution.
-0- Aug/20/2015 06:12 GMT