Company to Buy $1 Billion in Stock -- WSJ
06 Luglio 2018 - 9:02AM
Dow Jones News
By Scott Patterson
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (July 6, 2018).
Glencore PLC said Thursday it would purchase $1 billion in stock
from investors, launching the buyback just days after disclosing it
had received a subpoena from the U.S. Department of Justice.
Glencore's shares fell as much as 12% Tuesday after it said the
Justice Department was seeking records related to its compliance
with American antibribery and anti-money-laundering laws in the
Democratic Republic of Congo, Nigeria and Venezuela. It declined to
provide details.
Glencore's shares are down 16% so far this year, compared with
advances by mining-giant rivals that are benefiting from strong
commodity prices amid steady appetite for resources in China and
elsewhere. Anglo American PLC is 12% higher year-to-date, BHP
Billiton Ltd. is up 11% and Rio Tinto PLC has gained 2%.
Glencore has long signaled a buyback. Amid several years of low
commodities prices, Chief Executive Ivan Glasenberg sold off assets
and pared back debt dramatically. More recently, prices have
bounced back strongly, boosting Glencore's stock price. On
Thursday, shares rose more than 2% after the buyback
disclosure.
The Anglo-Swiss mining company's shares have been weighed down
this year by a series of negative news surrounding its giant copper
and cobalt mining operations in Congo. The Congolese government has
imposed a new mining code seeking to extract higher payments from
mining companies, a move Mr. Glasenberg and other mining executives
have rallied against.
Glencore faced a legal threat from Congo's state-owned mining
company, Gecamines, which sued one of its Congo copper companies,
Katanga Mining, over its $9.2 billion debt load. Glencore later
said a unit of Katanga Mining would issue $5.6 billion in stock to
retire debt, resolving the dispute.
Glencore also sued in Congo by its former partner, Israeli
billionaire Dan Gertler, who last year was sanctioned by the U.S.
Treasury Department for alleged corruption in Congo. Glencore
temporarily halted royalty payments it owed Mr. Gertler following
the sanctions, prompting the lawsuit. In June, Glencore said it
would resume the payments.
Write to Scott Patterson at scott.patterson@wsj.com
(END) Dow Jones Newswires
July 06, 2018 02:47 ET (06:47 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Grafico Azioni BHP (ASX:BHP)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni BHP (ASX:BHP)
Storico
Da Apr 2023 a Apr 2024