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Glencore offers no Xstrata clues as profit falls
August 21, 2012 / 6:17 AM / 5 years ago

Glencore offers no Xstrata clues as profit falls

LONDON, Aug 21 (Reuters) - Commodities trader Glencore stuck to its guns on a $30 billion bid for miner Xstrata on Tuesday, as it reported earnings for the first half of 2012 dragged down 26 percent by weaker commodity prices.

Glencore said its first half profit net of significant items fell to $1.81 billion, down from $2.44 billion a year ago and marginally above analysts’ expectations of $1.6 billion, according to consensus forecasts.

Its operating profit fell 24 percent to almost $2.51 billion, again topping forecasts.

Glencore, already the single largest shareholder in Xstrata with a 34 percent stake, announced in February it would bid for the stock it does not already own, offering 2.8 new shares for every Xstrata share held. It has met with resistance, however, from Qatar Holding, Xstrata’s second-largest investor, which in June demanded a ratio of 3.25.

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