The Commodity Futures Trading Commission has subpoenaed an unnamed metals warehousing firm for all of its documents and communications related to the London Metal Exchange since January 2010, Reuters reports.
The subpoena focuses on "anything that relates to moving metal from one warehouse to another within the same company... and procedures for loading out."
The CFTC last month ordered the warehouse to preserve emails, documents and instant messages from the past three years. In July, the NYTreported that warehouses which received such an order included Goldman Sachs (GS), Glencore (GLNCY.PK) and Noble Group (NOBGF.PK)
Meanwhile, Department of Justice officials has visited a warehousing company different to the one referred to above and asked about its operations.
Warehouses have been under increasing scrutiny over allegations that their activities have artificially boosted the price of metals, particularly aluminum.
It's the aluminum owners - not the warehouse operators - who control the disposition and location of metal stored in or outside the LME-approved warehouse system, says Goldman Sachs (GS), responding to charges it and other warehouse owners (JPM, MS) illicitly drove up the price of aluminum.
The Commodity Futures Trading Commission has told Goldman Sachs (GS), Glencore (GLNCY.PK), Noble Group (NOBGF.PK) and other companies that operate aluminum warehouses to retain internal documents and e-mails related to the businesses, the NYT reports. The move could presage a formal inquiry into the operations and comes after the paper reported how the activities of warehouse owners had driven up the price of the metal. It also comes ahead of a Senate hearing today into the commodities operations of major banks such as Goldman Sachs, JPMorgan (JPM) and Morgan Stanley (MS).
Noble Group (NOBGF.PK, NOBGY.PK) and Posco (PKX) drop their $1.2B takeover bid for Australia's Arrium, balking at paying more after the company's board rejected a sweetened offer. With iron ore prices recovering from three-year lows, analysts say it is in Arrium's interest to stall.
Australian iron ore miner and steel maker Arrium (ARRMF.PK) rejects a $1B takeover offer from a consortium led by Noble Group and South Korean steelmaker Posco (PKX), describing it as opportunistic. Shares soared 25% in Singapore on news of the bid, but they're still only half of where they traded in May.
The Macarthur Coal saga continues to unfold, as shareholders of Noble Group (NOBGF.PK) reject plans to sell a stake in Gloucester Coal to Macarthur. The no-vote frees up Macarthur to better consider sweetened bids from Peabody Energy (BTU -1.1%) and New Hope. (previously: I, II, III, IV)
Macarthur Coal spurns a $3.5B bid from Australian rival New Hope, saying it will continue to move forward with a plan to take over Gloucester Coal in alliance with Noble Group (NOBGF.PK). Macarthur had already rejected an earlier $3.45B bid from New Hope, and a $3.3B bid from Peabody (BTU).
Macarthur Coal rebuffed Peabody Energy's (BTU) second bid to acquire the company, saying the A$14/share offer was unattractive. Macarthur recommended its shareholders back an alternative plan to take over smaller rival Gloucester Coal, and give a 25% stake in Macarthur to Gloucester's main shareholder, Noble Group (NOBGF.PK).
The showdown between Peabody (BTU), Noble Group (NOBGF.PK) and Macarthur Coal continues to heat up: Peabody hits back against Noble's "oddly personal" press release, and Macarthur said it will move forward with an April 12 shareholders vote on the Noble/Gloucester deal. (previously: I, II)