5% jump in ENRC shares after Glencore takeover bid

Metal Stocks  |  2011-06-13 09:16:30   |   By Paul Ploumis

A sudden 5% jump was seen in the shares of Kazakh miner, ENRC after speculations of a 12 billion pound ($19.5 billion) takeover bid by commodities trader, Glencore.

LONDON (Scrap Monster): A sudden 5% jump was seen in the shares of Kazakh miner, ENRC after speculations of a 12 billion pound ($19.5 billion) takeover bid by commodities trader, Glencore.

ENRC shares are down almost 30 percent this year and hit 741 pence on Friday, its lowest level since August 2009. The decline is expected to be result of a boardroom battle at the group,

However, today shares in ENRC, were up 4.7 percent at 777 pence, outperforming a broadly flat mining sector. On the other hand, Glencore shares were down 0.1 percent.

As reported by Reuters, Glencore had held talks with ENRC's three founders and key shareholders. ENRC has long been named as a potential target for Glencore due to ENRC's undervalued asset portfolio and the heavy fall in its shares.

However, the industry experts believe that the decision of Glencore is not viable as the company would have to struggle to raise money pay for the takeover, as it cannot issue new shares for next six months…..read more on this

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