“But the FTSE 100 is already one-third weighted to the oil, gas and natural resources sectors. Moreover, five of the 10 worst index performers this year are expatriate resources stocks – Essar Energy, Vedanta Resources, Eurasian Natural Resources Corp, Lonmin and Kazakhmys. The last thing the FTSE needs is another deracinated natural resources company. Read the full FT Lex column“
The Vallares investment vehicle just launched by Hayward and financier Nat Rothschild is discussing a possible reverse takeover of Genel Enerji, a big oil producer in Kurdistan, northern Iraq. Read the full article
Last year, UK companies raised just £1.3bn in new equity, net of buy-backs and acquisitions. In the past month, Nat Rothschild and Tony Hayward raised the same amount by selling shares in Vallares, their new investment vehicle. Read the FT article by Richard Lambert, CBI.
This FT article notes the trend for majority-owned companies such as Glencore and Vallares joining the FTSE100 leaving minority shareholders exposed. So far this year mining and resource companies have made up 70% of IPOs in London and now constitute around one third of the FTSE 100 Index. Read the article