SocGen's Oudea Tells Glencore Boss How to Set Record Straightby and
Glasenberg faces `totally distorted' investor perceptions
Glencore has `good business' both in trading and mining
“First of all, keep your composure,” Oudea said Thursday, when asked what Ivan Glasenberg should do to shore up confidence in Glencore.
Shares in the Swiss commodities giant plunged 29 percent on Monday, their worst drop ever, on concerns over its $30 billion debt load. While Glencore since has regained most of the $6 billion of shareholder wealth erased in a few hours, many investors wonder if Glasenberg can hold the markets at bay.
The market view of Glencore is “totally distorted,” Oudea said in an interview with Bloomberg Television. Glasenberg should “focus on the communication and of course answer the market concern.”
Oudea recalled his own experience in August 2011 when Europe’s debt crisis provoked a selloff in European bank stocks. Societe Generale “acted quickly to reduce the balance sheet, to communicate on false perception,” he said.
Oudea isn’t the only top executive giving Glasenberg advice. Legal & General Group Plc CEO Nigel Wilson said Tuesday that the commodity trader should provide more information about its financial standing, calling Glencore’s situation a “quasi-Lehman moment.”
Peter Grauer, the chairman of Bloomberg LP, the parent of Bloomberg News, is a senior independent non-executive director at Glencore.