Source: Financial Times, 3rd March 2011

For a private company, low-profile Glencore certainly knows how to create a commotion. The world's largest commodities trader increased net income by almost 40 per cent to almost $4bn last year, $1.7bn of it from a 34.5 per cent stake in diversified miner Xstrata. But the market is more interested in Glencore's plans to go public. The trader-cum-miner seeks greater financial firepower to make acquisitions, repay debt and buy out departing partners. Moreover, it needs to give holders of its 2009 convertible bond something to convert into. An initial public offering would achieve this and provide acquisition currency - handy if, as seems likely, Glencore tries to merge with Xstrata. A reverse listing through a merger with Xstrata in another option. Either way, Glencore needs to establish a realistic valuation of itself.