A round-up of today's other stories in brief...
Glencore set to price initial IPO to give mid-$50bn valuation
GLENCORE IS set to price its initial public offering at a level that will give the commodities trading house a valuation in the mid-$50 billion range, below an average forecast valuation of $62 billion, according to people familiar with the deal.
The lower-than-expected pricing comes in spite of strong demand from blue-chip investors, who are set to take about a third of the $11bn IPO as cornerstone shareholders. The move is designed to secure a strong share rally for the company following its flotation.
“Ivan Glasenberg is determined to price a deal that has a great after-IPO performance,” said a person familiar with the IPO process. Glencore plans to become a public company when it floats in London and Hong Kong this month.– (Copyright The Financial Times Limited 2011)
Group holds Quinn talks with Anglo
AN ORGANISATION representing the Border region has said it will not tolerate "injustices" in the area following the takeover of the Quinn Group by Anglo Irish Bank.
A delegation from the Cavan-Fermanagh-Leitrim Border Area Community Action Group yesterday met Anglo chairman Alan Dukes to discuss the future of Quinn Group and its workforce.
In a statement, spokesman Pádraig Donohue said it had "major difficulties in accepting the validity of the commitment given by Anglo," a "State-owned toxic bank".
He also criticised the appointment of a management team "who understand governance and regulation but have no business experience whatsoever".
Manufacturing growth up in April
THE PACE of growth in Irish manufacturing activity rose slightly in April to reach its second highest level in 11 years, as export growth offered some hope to an otherwise struggling economy.
The NCB Purchasing Managers' Index, measuring manufacturing activity, rose to 56.0 in April from 55.7 in March, staying above the 50 mark separating growth from contraction for the seventh month. The index has only fallen below the 50 mark once in the past 14 months.
"The manufacturing sector is largely driven by exports, and the euro's continued rise against sterling and dollar will be of concern, but to date demand is outweighing this impact," said Brian Devine, economist at NCB Stockbrokers.
Thorntons Easter egg sales down 23%
CHOCOLATIER THORNTONS issued a profits warning yesterday as it blamed the record temperatures in April for a meltdown in Easter sales.
The hot weather saw same-store sales plunge 23 per cent over Easter week, Thorntons said. It expects pre-tax profits to be between £3 million and £4.5 million for the year to June 25th, compared with £6.1 million the previous year. City analysts had expected earnings for this financial year to be about £6 million. The warning comes as supermarkets step up discounts on Easter eggs and as cocoa and sugar prices continue to soar, piling pressure on smaller stores. – (Reuters)
