GENEVA (AP) -- Swiss-based commodities company Glencore International PLC reports its full-year results before the London stock market opens Monday.
WHAT TO WATCH FOR: Glencore recently announced plans for a $90 billion merger with Anglo-Swiss mining group Xstrata PLC, which was spun out of Glencore a decade ago. Xstrata's stock has edged higher in recent weeks as investors expect Glencore to increase its current bid of 2.8 Glencore shares for each Xstrata share.
Meanwhile, Glencore will want to show investors who bought into its own $10 billion IPO last year that the company is profiting from strong demand for its raw materials.
WHY IT MATTERS: Glencore is already a giant in the business of producing and trading commodities such as copper, coal and corn. Combining with Xstrata would make it the world's fourth largest natural resources group. It would also become the world's biggest producer of thermal coal for power plants.
WHAT'S EXPECTED: Observers expect Glencore to raise its offer to over three Glencore shares for each Xstrata share so it can secure more than three-quarters of its smaller rival's voting stock. Analysts polled by FactSet predict full-year earnings of about $4.24 billion.
LAST YEAR'S RESULT: Glencore reported a net profit of $3.8 billion for the full year 2010.
- Xstrata PLC