Glencore sinks after shares suspension

London Stock ExchangeCommodities trader Glencore sank to the bottom of London's leading shares index as the company requested its shares were suspended from trade after postponing a vote on its faltering £21 billion takeover bid of miner Xstrata.

Glencore lost up to 6% at one stage in early trading before it made the request to suspend its shares while it considered it options over the merger, which has been met with opposition from a major Xstrata shareholder.

The wider FTSE 100 Index made modest gains, adding 13.5 points to 5790.5, following Thursday's 2% surge in the wake of the European Central Bank's move to offer unlimited funds to lower debt-ridden countries' borrowing costs.

Xstrata saw its shares rise 3% or 31p to 1010p in a sign that investors are expecting a higher bid from Glencore. Qatar, a key investor, previously said it would vote against Glencore's proposed offer of 2.8 new shares for every Xstrata share held.

Other miners, as well as bankers, continued to take heart from ECB boss Mario Draghi's plans to buy bonds to take the pressure off struggling nations such as Spain and Italy, giving them more breathing space to repair their finances.

Evraz was top of the London market, adding 9% or 20.3p to 247p, while Lloyds Banking Group was ahead 1.4p at 37.6p, Royal Bank of Scotland advanced 9p to 242.5p and Barclays jumped 6.8p to 199.9p.
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