Market Currents

• Wednesday, November 4, 2009

• 13:28 PM Despite the breakdown of the Xstrata (XSRAF.PK)-Anglo American (AAUKY.PK) and BHP Billiton (BHP)-Rio Tinto (RTP) deals, energy and resources M&A activity could get back to pre-recession levels by 2011, says Deloitte in its report Energy Predictions 2010; the rise of state-backed rivals is putting pressure on mining groups. 1 Comment

• Thursday, October 15, 2009

• 14:15 PM Xstrata (XSRAF.PK) drops its £29.2B ($47.4B) offer to merge with Anglo American (AAUKY.PK) into one of the world's largest mining companies, five days before the U.K. Takeover Panel's "put up or shut up" deadline. Xstrata can't make another bid for six months without Anglo's agreement or another company getting involved, and Anglo can proceed with any planned restructuring. Comment!

• Friday, October 2, 2009

• 08:52 AM U.K.'s Takeover Panel gives Xstrata (XSRAF.PK) until Oct. 20 to formalize its June 'merger of equals' offer for Anglo American (AAUKY.PK) or walk away for six months. Unless Xstrata has a change of heart about paying a premium or surrendering more than 50% of the combo, it may be difficult to avoid walking away given the broad lack of enthusiasm from Anglo shareholders. Comment!

• Monday, September 21, 2009

• 05:06 AM A source close to Anglo American (AAUKY.PK) denies reports it's looking to push U.K. regulators to issue Xstrata (XSRAF.PK) with a "put up or shut up" order, which would force it to bid for Anglo within a set time frame or walk away. Comment!

• Sunday, September 20, 2009

• 16:45 PM Mining giant Anglo American (AAUKY.PK) is poised to ask U.K. regulators to issue Xstrata (XSRAF.PK) with a "put up or shut up" order, which will force it to bid for Anglo within a set time frame or walk away for at least six months. Comment!

• Friday, July 31, 2009

• 07:21 AM Anglo American (AAUK): H1 net profit of $2.97B (-30.6%), well outpacing consensus of $859M. Revenue of $11.13B vs. $17.92B a year ago. Says it "expects demand to remain soft in the near term until developed countries begin economic recovery." (DJ) Comment!

• Tuesday, July 14, 2009

• 16:39 PM Anglo American (AAUK) will likely issue a detailed rebuttal to Xstrata's (XSRAF.PK) 'merger of equals' approach by month-end, followed by a 'put-up-or-shut-up' request to the UK takeover panel that could force Xstrata's hand, Investec says. Firm sees the chances of a merger as very low. Comment!

• Thursday, July 9, 2009

• 09:00 AM Premarket gainers: RIGL +18%. AXL +16%. NVAX +12%. HBAN +11%. CTIC +10%. HGSI +8%. SOL +6%. SKS +6%. AA +6%. ALU +6%. TJX +6%. AAUK +6%. GNW +5%. DB +5%. SAY +6%. TGT +4%. ESLR +4%. SAP +4%. YGE +4%. CLF +4%. MT +4%. ABB +4%. X +4%. F +4%. GOLD +4%. ICE +4%.
  Losers: ELX -14%. AIG -4%. Comment!
• 07:38 AM Xstrata's (XSRAF.PK) attempt to win over Anglo American (AAUK) shareholders fails, as institutional investors resoundingly reject Xstrata's 'merger of equals' proposal. AAUK +4% premarket. Comment!

• Sunday, June 28, 2009

• 17:02 PM After rebuffing Xstrata's (XSRAF.PK) 'merger of equals' proposal last week, Anglo American (AAUK) wants to shore itself up. Sources say AAUK is in early talks about a possible investment from Chinalco (ACH), and that it's renewing its efforts to bring Sir John Parker in as its new chairman. Comment!

• Thursday, June 25, 2009

• 08:19 AM Still intent on merging with Anglo American (AAUK), Xstrata (XSRAF.PK) publishes details of its 'merger of equals' proposal in an attempt to win over shareholders. Comment!

• Wednesday, June 24, 2009

• 10:25 AM Brazilian miner Vale (VALE) and Chinese aluminum producer Chinalco (ACH) are each mulling bids for Anglo American (AAUK) and/or Xstrata (XSRAF.PK) after Anglo rebuffed Xstrata's merger approach earlier this week. With stakes so high, analysts say things could heat up in a hurry. Comment!

• Tuesday, June 23, 2009

• 09:00 AM Premarket gainers: ALVR +15%. PCS +9%. BSX +8%. ETFC +7%. UBS +6%. MTL +5%. OCNF +5%. AAUK +5%. STJ +4%. CENX +4%. CF +4%. ACAS +4%.
  Losers: RMBS -10%. HALO -9%. CTIC -5%. Comment!

• Monday, June 22, 2009

• 13:55 PM Anglo American's (AAUK +2.1%) board unanimously rejects a merger offer from Xstrata (XSRAF.PK -10.2%) due to "totally unacceptable" terms (Anglo statement). More suitors are expected to appear, though. (previously) Comment!
• 09:00 AM Premarket gainers: MEDX +22%. AVII +12%. NSU +10%. EMKR +6%. AAUK +6%. LSI +5%.
  Losers: ALU -9%. RTP -6%. DB -5%. FRO -5%. HMY -5%. WAG -5%. STSI -5%. MT -5%. AIB -4%. AU -4%. GFI -4%. AXA -4%. HBAN -4%. FCX -4%. Comment!

• Sunday, June 21, 2009

• 16:32 PM Xstrata (XSRAF.PK) proposes a "merger of equals" with Anglo American (AAUK), noting the pair's "complimentary assets." Analysts say a tie up is very compelling, and could save them $750M/year while emerging as a world leader in base metals, platinum, ferrochrome and coal, but AAUK has resisted the idea. Comment!