UPDATE 3-Glencore woos investors with promise of aggressive cuts
* Glencore begins "bottom-up review" of assets, projects
* Plans to update market in Q3 2013
* Unveils Glencore-heavy top team (Updates with detail on incentives, dividends, shares; adds quotes)
By Clara Ferreira-Marques
LONDON, May 3 (Reuters) - Glencore Xstrata told investors on Friday it would return excess cash, slash costs and might sell unwanted assets, raising expectations it would easily exceed planned synergies of $500 million from the deal that created the new group.
Unveiling a management team packed with veteran Glencore executives, the group promised to "cut bureaucracy and duplication", vowing it would reduce administrative staff, cut divisional offices and underperforming projects to ensure success even at a time of cooling commodity prices.
Mining mega-deals have had a mixed record of success at best over the past decade, but a day after Glencore sealed the acquisition of Xstrata, the biggest ever takeover in the sector, its shares soared 6 percent, helped by a jump in the copper price. At current prices the group is worth $73 billion.
"If we can cut costs enough, get rid of these corporate head offices, we can cut a lot of fat out of the system. These synergies and overhead reductions - that figure can ensure this merger is a success," CEO Ivan Glasenberg said in an interview.
"The target of $500 million is only the synergies on the trading operations. When we came up with that figure we had no idea what the overheads were in Xstrata ... and it wasn't a takeover at that time." Continued...