Barings' Burstow: Glencore faced 'Catch 22' but share placing shows commitment

Mining manager praised move

Laura Dew
clock • 2 min read

Glencore's controversial decision to allocate 22% of shares to employees indicates a positive commitment to the business, according to Baring Asset Management's global mining manager Clive Burstow.

The commodity giant raised $2.5bn in a share issue last week as it looks to reduce its net debt from $29.6bn to $27bn. However, the Investment Association and the National Association of Pension Funds (NAPF) criticised the company for "serious breach" of shareholder rights. The group allocated 22% of the new shares to employee shareholders, thereby ignoring the pre-emption rights of its other shareholders set out in the principles originally agreed upon when it first sought shareholder approval for the issuance back in May. However, Barings' Burstow (pictured) said the fact Glencore c...

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