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| Glencore shares dive on money-laundering probe | |
| (about 1 hour later) | |
| Shares in mining giant Glencore have sunk 12% after it was ordered by US authorities to hand over documents relating to a money laundering probe. | |
| The subpoena from the US Department of Justice is in relation to compliance with the Foreign Corrupt Practices Act and money-laundering laws. | The subpoena from the US Department of Justice is in relation to compliance with the Foreign Corrupt Practices Act and money-laundering laws. |
| It is regarding business dealings in Nigeria, Democratic Republic of Congo and Venezuela from 2007 onwards. | It is regarding business dealings in Nigeria, Democratic Republic of Congo and Venezuela from 2007 onwards. |
| Glencore confirmed it had received the subpoena, which it is now reviewing. | Glencore confirmed it had received the subpoena, which it is now reviewing. |
| A subpoena is a court order which compels an organisation or person to produce physical evidence, or face punishment. | A subpoena is a court order which compels an organisation or person to produce physical evidence, or face punishment. |
| Follow Glencore's share price | |
| "The market has reacted significantly," said investment bank Credit Suisse. "At this stage we would stress that this is a simple request for documents, rather than an announcement of a formal investigation. | |
| "From our perspective, while it is clearly a risk factor, we stress that these types of requests are more common than perhaps the aggressive drop in the Glencore share price suggests." | |
| Glencore mines and trades commodities and is one of the biggest firms in the industry. | Glencore mines and trades commodities and is one of the biggest firms in the industry. |
| In May, the company said it expected its full-year results to be between $2.2bn (£1.67bn) and $3.2bn after its first-quarter production had been in line with forecasts. | |
| However, earlier this decade it, along with the rest of the mining industry, had a tough time. | |
| In September 2015, its shares dived after a note from analysts at Investec said its equity value could be "eliminated", although Glencore responded that it was "operationally and financially robust". | |
| When it listed on the London market in 2011, its shares were priced at 530p, but they are currently trading at 307p. |