05 December 2019 by lberuti
Some present GLENLN ( Glencore Plc ) as a company that “trades in the stuff of which stuff is made”. It is a commodity trader and a diversified conglomerate which has interests in companies involved in mining, smelting, refining and agriculture. It has more than 90 offices in more than 50 countries. They are doing business in many of the world most impoverished and corrupt countries, and they have long relied on agents – intermediaries who work on commission – to help them secure deals. GLENLN has been asked many questions in the past, and it has already said that the US Commodity Futures Trading Commission and the Justice Department were investigating it over its business in the Democratic Republic of Congo, Venezuela and Nigeria. Today, its legal woes were compounded when it was announced that GLENLN is the subject of an investigation by the Serious Fraud Office in the UK on suspicion of bribery. That renewed attack from a different angle did not go down well with market participants. While GLENLN’s stock was marked down 7%, its 5-year CDS closed 14bps wider at 156bps in a credit market that generally traded sideways.