Glencore Xstrata Plc (GLEN)’s record low in London trading today means Ivan Glasenberg has seen the value of his stake in the commodities empire he runs slide by 2.8 billion pounds ($4.3 billion) since its 2011 initial public offering.
Glencore, the world’s largest exporter of power-station coal, has slumped 47 percent since selling shares at 530 pence apiece in May 2011. It fell 4.7 percent to close at 273.45 pence today. That values Chief Executive Officer Glasenberg’s 8.3 percent holding at about 3 billion pounds, compared with about 5.8 billion pounds at the time of the IPO.
Since Glencore sold $10 billion of shares more than two years ago commodity prices have dropped 18 percent, according to the Thomson Reuters/Jefferies CRB Commodity Index, amid concern slowing economic growth in China will curb demand for metals. Glencore’s 22 percent drop this year compares with the 34 percent retreat among the 115-member Bloomberg World Mining Index. A spokesman for Glencore declined to comment.
Glencore completed a $29 billion all-share takeover of Xstrata Plc last month to add coal, nickel, zinc and copper mines to its cotton-to-crude oil trading network and create the world’s fourth-biggest mining company.
Copper fell to the lowest price in three years in New York today on concerns that demand is slowing as stockpiles monitored by the London Metal Exchange reach a 10-year high. Futures for September delivery dropped 2.6 percent to $3.021 a pound as of 11:50 a.m. on the Comex in New York after touching $2.9935, the lowest level for a most-active contract since July 20, 2010.
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