Glencore shares surge in Hong Kong trading frenzy on rumours of asset sales

(Bloomberg) — Glencore Plc jumped the most on record in Hong Kong in heavy trading after reports that the commodities trader is talking to potential buyers for its agriculture business.

Shares in the trading and mining company surged as much as 40 percent to the highest since Sept. 22, extending a period of high volatility into a second week. The surge in Glencore volume relative to its 100-day average was the second-highest among Hong Kong-listed stocks, according to data compiled by Bloomberg.

Singapore's sovereign wealth fund, Japanese trading house Mitsui & Co., and a Canadian pension fund are among those interested in buying a minority stake in the business, people familiar with the situation said last week.

Glencore is planning to sell some assets in a package of measures to pare debt that also includes a $2.5 billion stock sale, spending cuts and stopping dividend payments. Glencore stock was whipsawed last week in London and Hong Kong, dropping 29 percent last Monday before recovering losses by the end of the week in its most volatile week on record.

Copper, which gives the company about a third of its earnings, rose 1.4 percent on Monday to $5,170 a metric ton by 11:39 a.m. in Singapore.