Glencore shares rally but fears remain for mining giantComments
Shares in the mining firm Glencore recovered slightly on Tuesday, but remained well down after losing around a third of their value the previous day.
The company realised gains of four percent in London but only after its Hong Kong-listed shares fell 29 percent.
The drop came amid concern over the company’s debt as well as low commodities prices.
But some analysts say the worries were exaggerated.
Analysts' latest thoughts on Glencore, with stock up slightly after Monday's plunge http://t.co/0LWbtvXxu3pic.twitter.com/6ChIPULikG— Bloomberg Business (@business) September 29, 2015
In a note to clients, Citigroup said Glencore should consider going private if the equity market continued to ‘express its unwillingness to value the business fairly’.
The theory is that a management buyout would make deeper restructuring easier in the face of slumping metals prices.
Copper, aluminium and nickel are all down more than a quarter compared with a year ago.