* Minimum valuation seen below $50 bln including new funds
* Eton Park, C. Suisse, Pictet also backing float -sources
* Bond owners BlackRock, GIC, Zijin, Fidelity also lined up
* "Cornerstone" investors may take nearly 30 pct of IPO
By Quentin Webb and Clara Ferreira-Marques
LONDON, May 3 Abu Dhabi's Aabar Investments will
be the biggest of at least 10 "cornerstone" investors backing
the $12 billion flotation of Glencore, the Swiss commodity
trader, people familiar with the matter said on Tuesday.
Aabar, majority owned by the emirate's International
Petroleum Investment Co (IPIC), will be joined by hedge funds
Och-Ziff Capital Management (OZM.N) and Eton Park, Swiss banks
Credit Suisse, Pictet and UBS, and a quartet of Glencore's
existing convertible bond investors, the people said.
Glencore [GLEN.UL], the world's largest diversified commodity
trader, is preparing to float in London and Hong Kong, with a
prospectus and an initial price range due on Wednesday.
Glencore is likely to price the IPO towards the lower half
of the wide $45 to $73 billion value range implied by numbers
released by the company in its intention-to-float document, and
below a widely cited $60 billion valuation.
People familiar with the matter said a more modest range
would help Glencore convince some reluctant investors who worry
they will be on the wrong end of a deal to allow the company's
star traders to sell out at the top of the market.
For a Breakingviews on Glencore click on [ID:nN03100599]
One person familiar with the matter said on Sunday that the
range could place a minimum value on the company of less than
$50 billion including new funds.
Reuters was first to reveal the make-up of Glencore's likely
investor base two days ago, when it reported that an Abu Dhabi
vehicle, big hedge fund managers and Swiss banks were set to
serve as "cornerstones", alongside several holders of the
Such investors back many Asian listings, committing to take
large, guaranteed stakes and hold them for at least six months.
The cornerstones could buy nearly 30 percent of the shares
sold -- or some $3.6 billion worth, if the listing raises its
maximum target of $12.1 billion, making it London's biggest
The four existing bondholders who will commit extra funds
are asset managers BlackRock (BLK.N) and Fidelity, the
Government of Singapore Investment Corp. (GIC), and China's
Zijin Mining (601899.SS), the people familiar with the matter
The precise identities of the new backers were reported
earlier on Tuesday by the Financial Times and the Wall Street
Journal. The FT said Aabar would commit at least $850 million,
and buy at least another $150 million during bookbuilding.
Credit Suisse and UBS are among the banks underwriting the
listing for Glencore, which is led by Chief Executive Ivan
Credit Suisse, Fidelity, Glencore, Och-Ziff and UBS declined
to comment. The other backers were not immediately available for
(additional reporting by Stanley Carvalho in Abu Dhabi, Elzio
Barreto in Hong Kong, Svea Herbst-Bayliss in Boston and Martin
de Sa'Pinto in Zurich; editing by Sitaraman Shankar)