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(The corporate
manipulations that are going on must be quite intense. One
report today endorsed by one of the leading researchers of
Marikana/Lonmin - David van Wyk, on fb below - suggests the main
shareholder in Lonmin, Xstrata, may be on the verge of buying
the rest of the dying company; while another predicts the demise
of the vast merger of Xstrata and Glencore, which would have
made up the world's largest mining house. Back in Feb, Lonmin
was a dog with fleas; now, just a dead dog - yet at rock-bottom
prices maybe one worth purchasing by Xstrata to take advantage
of the fast-rising platinum price, once the workers are
disciplined. Meantime, can we ask bigger questions, e.g. should
Lonmin's corporate charter be revoked? Should the firm's plant
and equipment at Marikana - 92% of its platinum output - be
nationalised, with Lonmin's vast liabilities for
eco-social-political damage urgently being assessed and charged,
prior to any shareholder compensation? Or instead, is capital
reasserting power now, by compelling mineworkers back into the
mines today? Should its pocket-police torturers and sweetheart
trade union continue business as usual? Though dry, this
material below is vomit-inducing when you go beyond the #s.)
ReutersGlencore-Xstrata deal on brink of collapseAs deadline passes.LONDON (Reuters) - Glencore's proposed $30 billion takeover of Xstrata came a step closer to collapse on Friday, as the commodities trader looked set to let slide an informal deadline for it to raise its offer and yield to rival shareholder Qatar. While Friday is not the final death knell for one of the largest ever proposed deals in the sector, analysts, investors and sources involved in the talks said the fact Glencore and Qatar continued to stare each other down - with only two weeks to go before shareholders vote - had put the deal on the brink. "It wouldn't be illogical to say this is 10 percent happening, 90 percent not happening," one source involved in the negotiations said. "If you were laying bets, you'd have to say this isn't going anywhere. It is not clear what the Qatari game is." Glencore listed last year, in large part to complete ambitious deals like a merger with Xstrata, in which it already owns 34 percent. The world's largest diversified commodities trader made its move in February, offering 2.8 new shares for every Xstrata share held. The long-awaited bid was thrown into question in June, however, when Qatar Holding, Xstrata's second-largest shareholder as a result of regular buying in the market since February, said it was demanding 3.25. The unexpected twist means two sides have engaged in what advisers on all sides have likened to a "game of chicken", with Glencore warning, most forcefully and most recently on Tuesday, that it would stick to its offer. Qatar, for its part, has made no public comment, but has continued to buy Xstrata shares and sources familiar with the matter say the sovereign wealth fund is showing no sign of yielding yet. It now owns over 12 percent. "They have both painted themselves into a corner, haven't they? Both sides want this to happen in a way, but neither of them can fold or concede," one of Xstrata's 40 largest institutional shareholders said. "The only thing that possibly could happen is they move the share ratio to 3, so less than the Qataris want, but still a concession. But they have both been so strident in their views, that the situation looks so tricky." DEAL OR NO DEAL? Friday's deadline relates to UK takeover rules, which under normal circumstances would require changes to a bid to come at least two weeks before shareholders are called to vote. In this case, September 7 is the date for both Glencore and Xstrata. Changes could happen after Friday's deadline, though they could require calendar changes and regulatory approval. Pressed earlier this week on whether a failure to act by Friday meant it would not act at all to change the bid, Glencore sidestepped the question. Sources on all sides of the deal have cautioned that a lack of clarity over the outcome could persist until the last moment - potentially the vote on Sept 7 - not least because of an apparent lack of active talks between Glencore and Qatar. "There's not much to say in a meeting," the source involved in the negotiations said. Both Glencore and Xstrata argue they will simply return to life as standalone companies if the deal collapses, with Xstrata concentrating on chasing elusive copper growth in a sector desperate for new deposits. Qatar says its focus is on the long term. But at least for management at Xstrata - left with two major shareholders and a potentially falling share price if the deal collapses - some minority investors say pressure increases. "Xstrata shareholders must be happy to retain the longer term growth upside which the standalone entity will offer," a second top-40 shareholder said. "But they will have to... press for wholesale changes to the executive and non executive team, who have in no way represented non-Glencore shareholders." The other losers in the event of collapse are likely to be the dozens of bankers and nine banks involved in a deal that should have brought in some $130 million in advisory fees in a lean year for dealmaking. Lawyers, accountants and other advisers were set to share a further $70 million. Instead, the deal looks set to join the list of failed mining mega-mergers - for now at least. "We are used to this," shrugged one veteran adviser. "This is
just a bigger version of what we have seen before." ***
"This is the same Glencore: Chris Mahoney, the trader's
director of agricultural products, who owns about £500m of
Glencore shares, said the devastating US drought had created
an opportunity for the company to make much more money.
Xstrata-Glencore ‘Highly Likely’ to Sell Lonmin, Liberum SaysBy Carli Lourens on February 05, 2012 Feb. 3 (Bloomberg) -- A combined Glencore International Plc and Xstrata Plc would probably sell their stake in Lonmin Plc, the third-largest platinum producer, helping spur deals in the platinum and ferrochrome industry, Liberum Capital Ltd. said. “Platinum has no strategic interest for Glencore as marketing opportunities don’t really exist therefore a disposal is highly likely,” Ash Lazenby and Dominic O’Kane, analysts at Liberum Capital, wrote in a research note to clients. Glencore, the world’s largest publicly traded commodities supplier, is in discussions to buy the shares in Xstrata that it doesn’t already own. Xstrata holds 24.6 percent of Lonmin, with a market value of about 540 million pounds ($855 million), according to data compiled by Bloomberg. A disposal could be the catalyst for a “pooling of mutual platinum group metal interest,” bringing together assets from Xstrata-Glencore, Eurasian Natural Resources Corp., Northam Platinum Ltd. and Aquarius Platinum Plc, the analysts wrote. ENRC owns 13.5 percent of Northam. Aquarius is the fourth-largest producer and Anglo American Platinum Ltd. and Impala Platinum Holdings Ltd. the largest. The producers all tap the Bushveld geological complex in the north of South Africa, which has more than three-quarters of the world’s reserves of the metal. Glencore sees limited value in precious metals and may seek to sell Xstrata’s Lonmin stake, UBS AG said in a separate note. --Editors: Tony Barrett, Amanda Jordan To contact the reporter on this story: Carli Lourens in Johannesburg at [email protected] *** More than half of Lonmin workers back at some shafts2012-08-25Watch – Govt is a pig that eats its children, says Malema2012-08-25 13:48 Expelled ANC Youth League president Julius Malema this
week described the government as a pig that eats its own
children after 34 Lonmin miners were shot dead by the
police during a strike in Marikana near Rustenburg. More than half of the workers at some of Lonmin’s Marikana mine shafts reported for work today, the company said, as it seeks to resume full operations in the wake of protests in which 44 people were killed. “Eastern shafts are working
this weekend and we have 57% attendance across these shafts. The
rest of the mine is closed as this is their off-weekend,”
Lonmin, which accounts for about 12% of global platinum output,
said in a statement. - Reuters *** Police ‘assaulting’ Lonmin miners 2012-08-25 www.citypress.co.za Staff reporters Scores of arrested Lonmin miners are allegedly being assaulted by police in North West police cells. City Press can reveal that more than 100 cases of assault with the intent to do grievous bodily harm have been opened against the police in the last 48 hours. The Independent Police Investigative Directorate (Ipid) is investigating the matter and provided a preliminary report to Police Minister Nathi Mthethwa late last night. Mthethwa’s spokesperson Zweli Mnisi confirmed to Sapa that the minister had received the report. “The preliminary report provided to the minister confirms that on August 22 it came to the attention of the Ipid that detainees linked to the Marikana incident were assaulted by (SA Police Service) SAPS members at Phokeng police station and Mogwase police station,” Mnisi said in a statement. Ipid spokesperson Moses Dlamini confirmed the investigation, saying they had sent investigators to three police stations, where they opened 130 assault and assault with intent to commit grievous bodily harm against police officers. 34 striking Lonmin miners were shot dead by the police last Thursday. 78 were wounded and almost 260 miners were arrested and are being kept in custody in police cells around Rustenburg. “The Ipid’s investigators registered a case of assault with intent to do grievous bodily harm at the Mogwase Police Station. Investigators obtained statements from 50 victims in this regard,” said Mnisi. Two similar cases were opened at the Phokeng and Jericho police stations by mineworkers detained there, Sapa reported. Mnisi said arrangements were being made for some of the miners to be relocated and to receive medical attention. “Any police officer who conducts him or herself in a manner that is not in line with constitutional principles should face the full might of the law and I encourage Ipid to investigate these allegations, without fear or favour,” Mthethwa said in the statement. *** Lonmin Release 8-24-12 The week of national mourning and the moving memorial events at Marikana on Thursday, have been vital in bringing calm, and a time for reflection and remembrance. It has also created the space for unity. All stakeholders agreed in ceremonies this week that it is time to move forward and begin the gradual journey back to normality. Lonmin's management is committed to this process and its absolute focus in the coming days will be to reach a peace accord, under the auspices of the Department of Labour, which allows for a peaceful return to work and an environment in which the concerns of all stakeholders can be addressed. Simon Scott, Acting CEO, said: “We welcome the Department of Labour’s efforts in facilitating the peace accord and we congratulate the Department and all participants in this regard. It is clear that everyone involved wants to move forward. We are dealing with tragic and challenging issues, and will be for a long time to come, but for the sake of the Company, its many thousands of employees and the industry which supports them we need to find a sustainable peace accord which allows people to return to a working business. That we are committed to doing in the coming days.” The Company has always said, and maintains, that it will discuss the strikers’ demands in the normal way, through their unions within the agreements which the Company and all unions involved have signed up to, but that requires the unprotected action to end. It has never refused to consider their demands. The week of mourning which began on Monday, announced by the President of the Republic of South Africa, and the memorial events of yesterday (Thursday) have been an opportunity for calm, reflection and remembrance. Lonmin agrees with union leaders who spoke at yesterday’s memorial events that next week marks an opportunity to begin the journey back to normality which is vital for the Company’s 28,000 employees, and for the country, and is grateful for their call for the Company to be supported, for the sake of their members. Clearly, achieving normality will be a long journey given the terrible events of the last two weeks, but without a return to work that journey cannot start. Lonmin, alongside the Unions, will continue to communicate to its wider workforce over the weekend, asking employees to report for work as normal on Monday. The Company has also been asked to provide clarity on wages after a number of conflicting reports. n *In order to ensure that Lonmin wages are market related, the Company undertook research to assess the wage level in the industry. Based on these findings, Lonmin took a decision to implement a drilling allowance of R750 per month for the RDOs, a practice which occurs in the mining industry. This brings the RDO guaranteed wage to just shy of R10,000 per month and is in line with other industry participants. In addition, the RDOs can earn performance bonuses. The average bonus earned is R1,500, but some are in the order of R6,000. * In the five years from 2007 to 2011, the RDOs were granted a cumulative pay rise of 62%. This compares with a cumulative 45% for level D managers and 34% for level E managers over the same period. A complete salary breakdown is shown in Table 1. Table 1: Complete RDO salary breakdown Basic Pension (14.83%) Medical Housing Holiday Leave Allowance RDO Allowance TOTAL *RDO R 5,405.00 R 801.56 R 556.00 R 1,850.00 R 450.42 R750.00 R 9,812.98 * •*Black Economic Empowerment * The Charter also provides targets for both Black Economic Empowerment (BEE) and for Historically Disadvantaged South Africans (HDSAs). Shanduka, our BEE partner, has an 18% equity interest in Western Platinum Ltd and Eastern Platinum Ltd. We are committed to achieving 26% ownership by the Charter’s requirement of 2015. • *Human Resource Development * In 2011 we spent $29 million on human resources development programmes, including adult basic education training and equipping young people living in the areas around our mines with the skills to work for us. The Lonmin Artisan College is a key part of this. Our recruitment policy gives preference to HDSA candidates and amongst permanent employees 46.5% of management is categorised as HDSA, including white women. • *Water supply * Lonmin has provided water reticulation in Oustad, which has enabled yard connections for 407 households. As we move towards calm and stability, Lonmin expresses its appreciation for the support and encouragement that we have received following the tragic events which occurred at Marikana. - ENDS - ENQUIRIES *Investors / Analysts: * *Lonmin Tanya Chikanza (Head of Investor Relations) +44 (0)20 7201 6007 Ruli Diseko (Investor Relations Manager) +27 (0)11 218 8373 Media: Cardew Group James Clark (London) * Emma Crawshaw (London) Alexandra Stoneham (London) +44 (0)20 7930 0777 +44 (0)20 7930 0777 +44 (0)20 7930 0777 Sue Vey (Johannesburg) +27 (0)72 644 9777 *Inzalo Communication *(Johannesburg) Gillian Findlay +27 (0)82 330 1477 Refilwe Madihlaba +27 (0)82 386 8468 Bridget von Holdt +27 (0)82 610 0650 *General Media Address: * [email protected] +27 (0)14 571 2055/2060 |
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