Cape Town - International resources group Glencore, recently hit by doubts about its financial health, said on Monday that it had no market-sensitive information to release that could explain the recent large price and volume movements in its share price.
Glencore shares rose in pre-market London trade after surging in Hong Kong after the Sunday Telegraph reported that the troubled mining giant may consider a takeover offer.
“The board of directors … has noted today’s increases in the price and trading volume of the shares of the company.
“Having made such enquiry with respect to the company as is reasonable in the circumstances, the board confirms that it is not aware of any reasons for these price and volume movements or of any information which must be announced to avoid a false market…” Glencore said in a statement made at the request of the Hong Kong stock exchange.
Shares in the company bounced by the most on record in Asia to trade as high as HK$18.02 and reached 113.8p in London this morning after it emerged that the firm’s senior management would not dismiss an approach for the entire business if one were forthcoming.
By 11am in South Africa, Glencore shares were up 7.49 percent. Glencore’s market capitalisation has halved since the start of the year.
AFRICAN NEWS AGENCY