Europe: Shares rebound, Glencore surges on plans to cut debt

[LONDON] European shares bounced back on Monday after sharp declines in the previous session, with mining and commodities trading firm Glencore leading the market higher after announcing plans to cut its debt.

The pan-European FTSEurofirst 300 index was up 1.1 per cent at 0712 GMT after closing 2.5 per cent lower on Friday.

Glencore shares surged 10 per cent after the company said it will suspend dividends, sell assets and raise US$2.5 billion in a new share issue to cut its debt by a third to US$20 billion by the end of next year. It has been under pressure to cut debt as prices for its key products, copper and coal, have sunk to more than six-year lows.

REUTERS