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If you are impressed with the performers on ‘Britain’s Got Talent,’ wait until you see the stars that Glencore Xstrata (LSE:GLEN) is bringing the to stage! The Company’s share price, which has lagged since the merger, was up modestly this morning by 0.48% to 303.95, a 1.45 pence increase.
As predicted back in April, many of the Xstrata senior executives are now available to hit the links on a daily basis. People walk up to them on the street and ask, “Didn’t you used to be somebody?” All seriousness aside, (That’s a joke, folks) Davis, Sartain, Pearce, Smit, Moraitis, Levene, and Reid, will all be able to find gainful employment. With a list of names like that, they ought to start a new law firm.
I’m not sure whether to call the new board members a gathering of former beauty pageant winners, Susan Boyle on steroids, or the executive all-star team of the 21st century. Take a look at the new players who have been appointed to the Glencore Xstrata board:
- The former CEO of Bloomberg Inc., and currently Executive Chairman of Bloomberg, Peter Grauer, has been appointed as a Independent Non-Executive Director. He has also been Managing Director at Donaldson, Lufkin & Jenrette, as well as CSFB Private Equity.
- The former CEO of Xstrata’s coal operations, Peter Coates, has been added as an Executive Director. Coates is currently a Non-Executive Director at Amalgamated Holdings and Santos Ltd. He has also served a Chairman of the Minerals Council of Australia, the NWS Minerals Council and the Australian Coal Association.
- The former CEO of Morgan Stanley and Credit Suisse First Boston, John Mack, has also accepted the position of Independent Non-Executive Director. Mr. Mack, often referred to in the U.S. as “Mack the Knife,” currently serves on the International Business Council of the World Economic Forum, the Shanghai International Financial Advisory Council, and the New York City Financial Services Advisory Committee.
Although the search for a new chairman continues, Acting Chairman, Tony Hayward, former CEO of BP and friend to coastal residents of Louisiana, Alabama, Mississippi, and Florida, announced the appointments saying that, “Each of them has an excellent business track record and extensive international experience, which we believe will prove invaluable in continuing the strength of debate and challenge which has typified the operation of the Company’s board since its IPO two years ago.”
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It was also revealed early this morning that the Company has received more that $19 billion USD in financial commitments from a group of 80 lenders, 29 of which have committed $500 million each. The Company is expected to borrow $17.3 billion in revolving credit facilities, $12.8 billion of which will replace lines of credit taken by Glencore prior to the recent merger with Xstrata.
With the new company, the renewed excellence of leadership and the extensive financial resources available to it, Glencore Xstrata will be not only one of the largest mining companies in the world, it will have talent and ability the likes of which Britain’s Got Talent has never seen.
A Final Note: Though I poked a bit of fun at Tony Hayward, he has the highest respect that this writer can offer. It was sad that a man of his caliber, skill, and integrity had to suffer the slings and arrows of misfortune over a few words of heart-felt compassion that were twisted by an angry, vigilante public that was looking for a scapegoat to bear all of their rage. Someone might want to consider Mr. Hayward as a candidate for the Chairman’s job at Glencore Xstrata.
