The former CEO of Morgan Stanley used Glencore’s sharemarket slump as a chance to buy up stocks.
John J. Mack, who is also a director of the miner, spent around US$670,000 buying up 550,000 shares on Tuesday, after investment house notes caused a steep decline in Glencore’s stock.
Glencore’s stock fell by 29 per cent earlier this week, after Investec analysts Hunter Hillcoat and Marc Elliot released notes stating Glencore would offer marginal value to shareholders, if the ongoing low commodities prices continue.
The two said that without major restructuring most of Glencore’s equity value would evaporate.
The market reacted swiftly, as the miner shed its value.
However in the following days the stock recovered 33 per cent, as many other investment houses and banks called the market move a gross over-reaction.
Glencore chairman, and former BP CEO, Tony Hayward also bought up stock, purchasing 100,000 shares, in an effort to demonstrate confidence in the miner.