LONDON — U.S. authorities have demanded Glencore PLC hand over documents about its business in the Democratic Republic of Congo, Venezuela and Nigeria in relation to a corruption probe, sending the mining company's shares down 8 percent Tuesday.
Switzerland-based Glencore said it received a subpoena from the U.S. Department of Justice dated July 2 requesting documents and records on compliance with the Foreign Corrupt Practices Act and U.S. money-laundering statutes.
Glencore said the documents requested from its U.S. arm related to the commodity trader's business in the three countries from 2007 to present. Glencore, which listed in London in 2011, said it was reviewing the subpoena.
The U.S. Foreign Corrupt Practices Act makes it a crime for companies to bribe overseas officials to win business.
Shares in Glencore, the world's largest producer of cobalt with large operations in the DRC, fell as much as 13 percent, the largest one-day fall in more than two years. They closed down 8 percent at 321 pence on the London Stock Exchange.
Analysts at Barclays and Credit Suisse viewed the initial share price drop as steeper than warranted.
"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 today suggests," a note from Credit Suisse said.
Jefferies lowered its target price to 440 pence from 500 pence for Glencore but maintained a "buy" rating.
"While Glencore has not been found guilty of anything yet, money laundering fines from the U.S. can be significant," analysts at Jefferies wrote.