{"id":7629,"date":"2012-02-04T01:40:08","date_gmt":"2012-02-03T23:40:08","guid":{"rendered":"http:\/\/www.myza.co.za\/02\/dealtalk-glencore-move-on-xstrata-lights-fire-under-ma-hopes\/"},"modified":"2012-02-04T01:40:08","modified_gmt":"2012-02-03T23:40:08","slug":"dealtalk-glencore-move-on-xstrata-lights-fire-under-ma-hopes","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/dealtalk-glencore-move-on-xstrata-lights-fire-under-ma-hopes\/","title":{"rendered":"DEALTALK-Glencore move on Xstrata lights fire under M&amp;A hopes"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>* Mid-caps likely to be focus of MA activity<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>* Combined group seen likely to sell stake in Lonmin<\/p>\n<p><span><\/span><\/p>\n<p>By Clara Ferreira-Marques and Victoria Howley<\/p>\n<p><span><\/span><\/p>\n<p>LONDON, Feb 3 (Reuters) &#8211; Glencore&#8217;s<br \/>\nearlier-than-expected move on mining group Xstrata could<br \/>\nindicate that mining company valuations have reached a bottom,<br \/>\ngetting bankers excited about the prospect of a revival in<br \/>\nmerger activity.<\/p>\n<p><span><\/span><\/p>\n<p>Glencore is already Xstrata&#8217;s biggest shareholder and a deal<br \/>\nhas been expected since the commodities trader went public in<br \/>\n2011.<\/p>\n<p><span><\/span><\/p>\n<p>But coming just a year after the bumper $10 billion listing,<br \/>\nand after a dismal performance in Glencore&#8217;s shares, it is being<br \/>\nread as an indication that the time could now be right for more<br \/>\nmining deals, with valuations low and cash piles high.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;It reinvigorates the sector,&#8221; said Liberum analyst Dominic<br \/>\nO&#8217;Kane.<\/p>\n<p><span><\/span><\/p>\n<p>A combined Glencore-Xstrata, is expected itself to retain<br \/>\nthe appetite for deals, particularly in areas it has earmarked<br \/>\nfor growth, like iron ore. And a sharp drop in Glencore&#8217;s<br \/>\nborrowing costs &#8211; the cost of insuring its debt has come off by<br \/>\nalmost a third this week &#8211; will certainly make it easier for the<br \/>\ncompany to borrow.<\/p>\n<p><span><\/span><\/p>\n<p>Some are even speculating that the merged group could take<br \/>\nanother swing at mining group Anglo American, under<br \/>\npressure from its larger peers and embroiled in a potentially<br \/>\ndamaging legal battle in Chile.<br \/>\n\u00a0 <span class=\"label\"><strong>Continued&#8230;<\/strong><\/span><\/p>\n<p><span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>* Mid-caps likely to be focus of MA activity * Combined group seen likely to sell stake in Lonmin By Clara Ferreira-Marques and Victoria Howley LONDON, Feb 3 (Reuters) &#8211; Glencore&#8217;s earlier-than-expected move on mining group Xstrata could indicate that mining company valuations have reached a bottom, getting bankers excited about the prospect of a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-7629","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/7629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=7629"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/7629\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=7629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=7629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=7629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}