Glencore (LON:GLEN) has set up a committee to respond to a US subpoena relating to possible corruption and money-laundering, the commodities giant has said. The US Department of Justice (DoJ) has requested documents related to the FTSE 100 group’s business in Nigeria, the DRC and Venezuela from 2007 to present.
Glencore’s share price has fallen deep into the red in today’s session, having given up 3.79 percent to 314.55p as of 13:01 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 1.12 percent lower at 7,605.93 points. The group’s shares have added just under three percent to their value over the past year, as compared with about a 3.8-percent gain in the Footsie.
Glencore updates on US probe
Glencore announced in a statement today that it had established a committee to oversee the company’s response to the DoJ’s subpoena to produce documents and other records related to compliance with the Foreign Corrupt Practices Act and US money laundering statutes.
“Glencore takes ethics and compliance seriously throughout the Group,” chairman Tony Hayward said in the statement, adding that the commodities giant “will cooperate with the DOJ, while continuing to focus on our business and seeking to maximise the value we create for our diverse stakeholders in a responsible and transparent manner”.
Analysts on commodities giant
JPMorgan Chase & Co, which sees Glencore as a ‘buy,’ set a price target of 550p on the stock last week. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 424.11p.
Glencore is scheduled to post its half-year production report on July 31, to be followed by the group’s half-year results on August 8.