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Glencore shares are jumping 40% in Hong Kong on takeover hopes

Oct 5, 2015, 12:03 IST

Shares in commodities trading and mining giant Glencore show no sign of settling down.

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Hong Kong-listed shares in Glencore have jumped a crazy 44% on Monday, after reports over the weekend that management would listen to takeover offers for the company.

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The Telegraph reported on Saturday that Glencore "would listen to offers for a takeover of the entire company but its management does not believe there are any buyers willing to pay a fair value for the business in the current market."

Despite the fact that it's far from a concrete offer and it sounds like management are pretty dismissive at the moment, it's enough to get speculators excited.

Glencore shares have been going crazy over the past week and the feeling in the City is that Glencore is definitely "in play" - vulnerable to a takeover bid.

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Stock dived at the start of last week, falling 29% in just one day, amid fears over how the company would cope with its huge $100 billion debt pile given low copper prices.

But Glencore shares had staged a dramatic comeback by the end of the week after the company reassured shareholders that it wasn't under any balance sheet pressure and management bought more shares.

While the value has recovered, today's big move shows it's still far from stable.

Citi suggested last week that Glencore could pull-off a management buyout and take the company private again, but The Telegraph's sources say CEO Ivan Glasenberg is "dismissive" of this idea.

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