Oil report

CIC, others interested in loan-for-stakes in Glencore-report

LONDON, Aug 30 (Reuters) - Sovereign wealth fund China Investment Corporation is one of six parties interested in loaning cash to Glencore International AG in return for a stake in the world’s largest commodities trader, according to a report in the Independent on Sunday.

The newspaper said the other five investors in loan-for-stake talks are Fidelity, BlackRock, Capital Group, U.S.-based energy investor First Reserve Corporation, and Singapore state investor Temasek [TEM.UL].

Swiss-based Glencore is looking to raise between $1 billion and $1.5 billion, the Independent quoted a mining source as saying.

The loans would then be converted to equity at the time of a probable flotation in 2012, the newspaper said.

Glencore declined to comment.

Speculation over a possible IPO of the secretive commodities giant, estimated to be worth up to $40 billion, has been rife in recent months.

However, bankers familiar with Glencore’s thinking told Reuters in June that any public listing was likely to be years away [ID:nSP449365].

Glencore, which has a 35 percent stake in FTSE100 miner Xstrata XTA.L, posted a 57 percent drop in first-half net income on Thursday as commodity prices slumped [ID:nLR590381]. (Reporting by Rosalba O'Brien; Editing by Mike Nesbit)