HONG KONG: Shares in mining giant Glencore soared 33.64 percent in mid-afternoon trade in Hong Kong, following reports it is in talks to sell its agriculture business.
Shares in the Swiss-based firm have fluctuated wildly amid investor fears that sinking commodity prices will affect its ability to meet outstanding debt obligations.
Singapore's sovereign wealth fund, Japanese trading house Mitsui & Co., and a Canadian pension fund are among potential buyers, Bloomberg News reported.
The firm plunged in trading last week after brokerage Investec questioned its future if commodity prices -- which are wallowing at multi-year lows owing to weak demand from a slowing China -- fail to recover soon.
Most resources-linked firms have taken a hit in recent months as the price of copper, aluminium, iron ore and oil have tumbled.
But Glencore has been particularly badly affected because of its huge $30 billion debt load, even after the firm this month raised $2.5 billion via a shares sale as part of a vast plan to rejig its finances.
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