Zhevago’s forced asset sale is ominous for miners 6 Oct 2008 Kostyantin Zhevago, Ukrainian billionaire and owner of miner Ferrexpo, dumped his stock and took a 30% hit to meet a margin call on a loan. It s not just that he was highly leveraged. The dramatic fall in metals prices means harder times for the mining sector.
Xstrata’s long game puts squeeze on Lonmin 10 Sep 2008 The metals giant has an 11% stake in the UK platinum miner and an option to formalise its hostile bid. The longer it waits, the more Lonmin s shares seem to slide. Xstrata can almost certainly afford to pay more but the chances of it doing so are receding.
Lonmin shareholders fire first shots in defence 8 Aug 2008 The UK miner s biggest shareholder, M&G, has refused to sell its 17% stake to raider Xstrata. Lonmin s board has yet to produce much of a defence. Investor holdouts look to be the company s best chance of winning a higher offer.
Xstrata plays rough with $10bn Lonmin bid 6 Aug 2008 The metals giant has bypassed the platinum miner s board with a hostile cash bid, and a dawn raid to boot. The scarcity of Lonmin s assets and its depressed shares explain the aggressive approach and its timing. Lonmin will struggle to repel this assault.
ArcelorMittal shows why size pays in metals 30 Jul 2008 The steel giant produced an astonishing $8bn of ebitda in Q2. That's not just because China is crunching through the stuff. ArcelorMittal is still squeezing yet more synergies from its two year old union. That won t have escaped other mergerminded metals giants.
Why oligarchs love a London listing 16 Jul 2008 The Russian billionaires who built up giant companies in the freeforall days want to consolidate and tap western capital markets. They hope this will bring them respectability. But serious governance problems and the Russian government s protectionism are in their way.
Norilsk Nickel could benefit from oligarch stand-off 1 Jul 2008 Vladimir Potanin and Oleg Deripaska, who are fighting for control of the world s largest nickel producer, have placed their candidates on the company s board. But Norilsk s two independent directors will determine its future provided one of them becomes chairman.
Mittal shows faith in customer power 30 Jun 2008 The Indian magnate s steel firm has built a 20% stake in Australia s Macarthur Coal. That looks wise. Even without a full takeover, holding sway at firms where you re a big customer has value. That might also explain Mittal s new board seat at trusted advisor, Goldman Sachs.
Oligarchs ready for showdown at Norilsk Nickel 18 Jun 2008 Two Russian billionaires Oleg Deripaska and Vladimir Potanin are fighting for control of the world s top nickel producer. Norilsk s standalone days seem to be over, but the two have different plans. It s an important argument, but minority shareholders are excluded.
Kazakhstan’s $50bn mine-meld gets murkier 10 Jun 2008 The autocratic government has shifted its holdings in Kazakhmys and ENRC, which just last month ended deal talks. Investors seem to be sanguine as long as the share prices keep rising. But they should be more concerned by this mysterious game of politicaleconomic chess.
BHP exploits Rio bid’s Godot-like timing 6 May 2008 A $420bn merger between the AngloAustralian miners is months away and all the while, Rio s value relative to BHP s offer is eroding. The deal, if it happens at all, will probably have to be at a higher price. But for now, the long wait works in BHP s favour.
Deripaska’s ambition inches forward 25 Apr 2008 Rusal, the Russian tycoon's aluminium company, has secured a 25% stake in fellow miner Norilsk, thanks to a spat between two other oligarchs. That's a small triumph. But Oleg Deripaska is still far from achieving mastery over Russia's huge metal and mining industry.
Silver loses some speculative sparkle 24 Apr 2008 The £4bn listing of Fresnillo, a Mexican miner, squeaked through at the bottom of its price range after silver prices fell sharply. The precious metal is a quirky reminder that speculative fever can cool almost as quickly as it ignites.
Kazakh mine meddling should worry investors 26 Mar 2008 The Nazarbayev government wants 15% of Kazakhmys, to match its holding in rival ENRC. Investors should see this as a reminder that the state effectively calls the shots and has little reason to put their interests first.
Vale fails to hit pay dirt 26 Mar 2008 The Brazilian miner s £44bn approach to UK rival Xstrata wasn t workable. A stubborn minority shareholder is one reason. Another is that the capital markets don t quite seem to share miners faith in longterm high prices.
Miners play risky game of Chinese chicken 19 Mar 2008 Rio Tinto and BHP Billiton are antagonising their biggest customer by cranking up iron ore prices. In the short term, it's a rational way to increase profits. But the result may be even fiercer Chinese opposition to a merger. That would be bad for shareholders on both sides.
Kazakh miners in murky £20bn merger talks 12 Mar 2008 The preliminary discussions between ENRC and Kazakhmys about forming a Kazakh resources champion are likely to hinge largely on politics and the machinations of local oligarchs. Minority investors in both Londonlisted companies will have to keep their fingers crossed.
Don’t mourn dying Vale-Xstrata deal 11 Mar 2008 It's hard to see how the Brazilian miner can overcome the obstacles to making a compelling offer for its UK rival. But unlike BHP Billiton's synergyled bid for Rio Tinto, this isn't a deal anyone really needs.
Xstrata minorities sidelined in $87bn Vale merger 28 Feb 2008 The Brazilian miner has offered $87bn for its UK rival. But Swiss trader Glencore, Xstrata s biggest shareholder, has balked at the terms. It s a cautionary tale of what happens to other investors when a big shareholder pursues its own agenda.
Indonesia’s brinkmanship with Newmont may backfire 14 Feb 2008 It set an unrealistic deadline for the mining giant to sell a 10% stake in a local mine. That imperils its attempt to portray itself as investmentfriendly. And with economic clouds gathering in the region, Indonesia's ultimatum might do it more harm than good.