Summary
IT ALWAYS had the ingredients of controversy. When Xstrata, the Pounds 6bn metals group headed by Mick 'the miner' Davis, decided it needed to bolster its balance sheet, there was an unavoidable problem - how to deal with its largest shareholder, the secretive Swiss-based Glencore.
Xstrata may by gagging for cash, but Glencore is hardly flush. Its credit rating was downgraded a few weeks ago: it now stands at BBB minus, only just above the level that is reckoned to count as junk status.See the full content of this document
Extract
Tricky Balancing Act for Xstrata ; City Focus
Xstrata asked its shareholders for Pounds 4bn and Glencore owns around 35pc of Xstrata. Do the arithmetic and the result is simple and clear: Glencore is in for Pounds 1.4bn, cash it apparently does not have to hand.
Hence ...See the full content of this document
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