Kazakh miner surges on takeover speculation

LONDON: Shares in Kazakh miner ENRC soared Monday on reports that it faced a possible takeover by Swiss commodities giant Glencore worth £12 billion (13.6 billion euros, $19.6 billion).

London-listed Eurasian Natural Resources Corporation (ENRC) saw its shares jump 4.65 percent to close at 776.5 pence, while Glencore stock gained 2.75 percent to 523.40 pence.

The FTSE 100 index of leading companies, on which both mining companies are listed, finished 0.13 percent higher on Monday.

Glencore chief executive Ivan Glasenberg has held recent takeover talks with three billionaires who control around 45 percent of ENRC stock, the Sunday Times reported over the weekend.

However, ENRC declined to comment on the story when approached by AFP, while Glencore was not immediately available for comment.

The Sunday Times, which cited a source with knowledge of the discussions, said the deal would transform the Swiss trader into one of the world's largest mining operators.

The report has surfaced weeks after Glencore launched itself onto the stock markets in Hong Kong and London, in a historic flotation which valued the Swiss giant at $59.2 billion (42.0 billion euros).

ENRC, one of Central Asia's largest miners, has operations in Kazakhstan, China, Russia, Brazil and Africa, and has been quoted on the London stock market since 2007.

Glencore is the world's biggest commodities trader, with products including oil, coal, gold and foodstuffs. It also owns a number of mines worldwide.

Copyright AFP (Agence France-Presse), 2011