Glencore board informed to axe ‘Mini-Me’ boss Gary Nagle

‘Mini-Me’: Bluebell Capital has launched an outspoken private assault on Gary Nagle

An activist investor has unleashed a rare assault on commodity big Glencore and is looking for chief government Gary Nagle to be ousted.

FTSE 100 agency Glencore, which floated on the London inventory market in 2011, has been dogged by corruption scandals which have led to it being pressured to pay out greater than a billion kilos in fines and settlements.

There have been excessive hopes that when Nagle was appointed in July 2021 – succeeding former boss Ivan Glasenberg – he would assist to restore among the harm to Glencore’s fame.

In a letter to the board, Bluebell Capital has launched an outspoken private assault on Nagle, branding him an Austin Powers-style Mini-Me model of Glasenberg, who stays a high shareholder with a ten per cent stake.

Bluebell, which final week publicly criticised oil big BP’s inexperienced vitality technique, mentioned it has offered its stake in Glencore and has no plans to reinvest after dropping religion in Nagle.

In the Austin Powers spy spoof movies, Mini-Me, pictured, is a tiny clone of the character Dr Evil. Nagle was nicknamed ‘Mini-Ivan’ by Glencore merchants earlier than he landed the highest job.

Since his appointment Nagle has been working to spruce up Glencore’s fame. In August, dozens of the world’s greatest asset managers accused the buying and selling home of mendacity in previous share prospectuses to cowl up corrupt actions.

Bluebell has known as on the board to dismiss Nagle and start a seek for a successor. Partner Giuseppe Bivona wrote within the letter: ‘Speaking candidly, after two years intently following and speaking with the corporate we have now misplaced religion, belief and confidence in Mr Nagle, whom we view as the actual stumbling block for future worth creation.

‘Additionally, based mostly on our intelligence, Mr Nagle’s diminishing market assist is privately shared internally inside the corporate.’

The hedge fund has raised eyebrows by by no means disclosing the dimensions of its former holding in Glencore. Stakes of greater than 5 per cent held instantly have to be made public.

The parting shot comes regardless of the commodity big fulfilling a lot of Bluebell’s calls for, together with promoting its grain enterprise Viterra and making strikes to spin-off its coal arm final yr.

Glencore’s local weather technique acquired 70 per cent approval from traders in 2023.

Bivona added: ‘We strongly suggest that the board critiques Mr Nagle’s efficiency and considers appointing an exterior chief government.

‘This change is essential not just for fostering the cultural transformation of an organization that has traditionally been entangled in quite a few bribery and corruption investigations, a few of that are nonetheless ongoing, but additionally as a result of Mr Nagle, after nearly three years, has utterly failed to grasp this crucial.’ 

Bluebell added: ‘We are now not shareholders and haven’t any intention in reinvesting within the firm underneath present management.’

The broadside comes after a really tough 12 months for Nagle, who led a protracted takeover of Canada’s Teck Resources coal enterprise for £5.6 billion. After a lot wrangling, the deal lastly closed in November.

Over the previous 12 months Glencore’s shares have plunged 24 per cent. Analysts say Nagle may have one other troubled yr forward.

Nearly 200 funds – together with some managed by Fidelity, Vanguard, Legal & General, HSBC, Abrdn and Invesco – are searching for damages from Glencore over allegations that the corporate and its senior management made deceptive statements that lined up corrupt actions.

The claimants alleged they ‘suffered loss’ because of ‘unfaithful statements’ and omissions in Glencore’s 2011 prospectus for its itemizing in London and the later 2013 prospectus for its merger with Xstrata.

The motion follows Glencore’s admission of bribery and market manipulation in 2022.

After a coordinated worldwide investigation, the Swiss firm agreed to plead responsible to a collection of costs in return for paying $1 billion (£790 million) in fines and forfeitures within the US, £280 million within the UK and $40 million in Brazil. Glencore declined to remark final evening.