Oreninc Index Stumbles into Fall
The Oreninc Index stumbled for the week ending October 10, 2014. Total dollars announced dropped to $59.9m, a four-week low. Three brokered deals were announced for $42m, a three-week low. No bought deals were announced for the second time in four weeks. It seems that things are only getting worse in the financing market.
Deal making was active this week, with Lundin Mining (TSX:LUN) buying Freeport McMoRan (NYSE:FCX) 80% ownership interest in the Chilean Candelaria/Ojos del Salado mining operations for $1.8b in cash. Rumours also swirled of Glencore PLC (LON:GLEN) trying to merge with Rio Tinto Group (NYSE:RIO), though it appears Rio has rejected the reported all-stock offer made by Glencore. The deal would create the world’s largest publicly traded mining company.
While fundraising and equity numbers are increasingly getting worse and worse, the crazed deal making from this week is an interesting development. Maybe with companies out trying to make things happen, excitement will be spurred and investors will find value in what has been created. Nonetheless, it would not be wise to hold your breath in a market that has never looked worse during a time of the year that it generally looks its best.