Way clears for Hanlong boss Steven Xiao’s extradition
The Australian revealed the green light had been given for former Hanlong Australia boss Steven Xiao to be extradited to Australia to face 105 charges of insider trading following a finding by a Hong Kong Magistrate.
It comes as the Australian Sec¬urities and Investments Commission and Australian Federal Police closed in on assets owned by Xiao and his wife under proceeds of crime, repossessing assets including the couple’s Sydney home.
According to the ASIC, the decision clearing the way for Xiao’s deportation was made in July by the Hong Kong Eastern Magistrates Court, but ASIC and the AFP are still awaiting a final decision by the Hong Kong SAR government to deliver Xiao to Australian authorities.
Rio touted as Glencore takeover target
According to the Australian Financial Review, Rio Tinto is on Glencore chief Ivan Glasenberg’s wish list, but a takeover attempt at current prices would blindside the market, fund managers say.
Glasenberg has an impressive history of buying assets at the bottom of the market and riding the cycle up.
He has been quick to talk down iron ore this year, amid dramatic price falls and a huge increase in production by the majors. Speculation that Rio could be on acquisition-hungry Glencore’s radar has been bouncing around in investment circles for the past few weeks but some funds see it more as a thought bubble than a short or event medium-term prospect.
Pengana Capital fund manager Tim Schroeders said Rio was no doubt on Glasenberg’s wish list but Swiss giant Glencore was unlikely to make a play.
AngloGold scraps demerger, raising
IN AN extraordinary backflip, AngloGold Ashanti has abandoned plans for a demerger and $US2.1 billion ($A2.3 billion) capital raising due to shareholder opposition.
The plan only lasted five days with shareholders opposing the size of the capital raising.
AngloGold said it had consulted with investors holding around two-thirds of its shares since the announcement last week.
The $2.1 billion raising was a condition of the spin-off of all of the company’s assets outside South Africa, designed to reduce AngloGold’s debt of around $3 billion.
“There has been broad support for the strategic logic of the restructuring, but a number of shareholders have expressed concerns about certain aspects of the proposed transactions, in particular the quantum of the equity capital raising needed to enable the restructuring to be implemented in accordance with regulatory and other requirements,” AngloGold said.
“AngloGold Ashanti has, therefore, decided not to proceed with the restructuring and capital raising, as currently proposed.”
