R/€ = 15.99 Change: -0.02
R/$ = 14.01 Change: -0.03
Au 1221.51 $/oz Change: 6.02
Pt 845.50 $/oz Change: 3.71
 
 
R/€ = 15.99 Change: -0.02
R/$ = 14.01 Change: -0.03
Au 1221.51 $/oz Change: 6.02
Pt 845.50 $/oz Change: 3.71
 
 
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Abu Dhabi's Aabar writes down Glencore stake

16th November 2012 BY: Reuters

LONDON – A top shareholder in Glencore, Abu Dhabi's Aabar Investments, has written off more $392-million of its $1-billion investment in the commodities trader, less than two years after taking part in its record listing.

Aabar, a unit of Abu Dhabi's State-owned International Petroleum Investment, became the largest new shareholder in Glencore when the mining-to-trading giant went public in May 2011, investing $1-billion.

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According to financial statements filed by IPIC on Thursday, Aabar, which owns 1.4% of Glencore, has recognised an impairment loss of $392-million. It gave no further details.

Glencore's shares are trading almost 40% below an IPO price of 530p, underperforming by more than 10% a mining sector that has been hit by worries over cooling demand - despite hopes its marketing arm would help weather stormier times for the commodities markets.

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The writedown comes as Glencore, the world's largest diversified commodities trader, moves into the final stages of its long-awaited takeover of miner Xstrata, in which it is already the largest shareholder.

Qatar, which has become the second-largest shareholder in Xstrata, said on Thursday it would vote in favour of the deal.

IPIC said in the same interim financial statement that it had booked a fair value loss of $660-million on its shares in Italian bank UniCredit, though a gain of $51-million on its stake in automaker Daimler.

IPIC said its profit for the six months to the end of June totalled $818-million, down from $1.16-billion a year ago. 

EDITED BY: Reuters
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