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LONDON (Reuters) – Commodities colossus Glencore (GLEN.UL) has unsmooth up one-time BP (BP.L) chief Rodney Chase as chair as it prepares for a doable $60 1000000000 float, the Sun Times reported.

The newspaper said, citing sources close to the situation, that Chase had united in generalisation but had not been formally appointed. It said the other effort candidate, past change minister nobleman Davies, had overturned the offer down.

Chase, who has also been help chair of supermarket assemble Tesco (TSCO.L) and is the outgoing chair of lubricator services concern Petrofac (PFC.L), spent nearly 40 eld at BP, where he was device in the creation of Slavonic stake TNK-BP.

Glencore declined to comment.

However, the Glencore persona haw not last long, the Times said, as Chief Executive Ivan Glasenberg is stabbing to merge with land miner Xstrata (XTA.L), of which Glencore owns 34 percent. Xstrata Chief Executive Mick solon would then embellish chair of the merged group, it said.

Glencore's ties to Xstrata haw also eliminate Deutsche Bank (DBKGn.DE) and JPMorgan (JPM.N) from the $300-$400 meg in fees that a organisation could yield.

A standoff between Glasenberg and solon -- who has called on JPMorgan's Ian Hannam and Brett Olsher, formerly of Deutsche Bank, for a progress of deals -- could obligate banks to verify sides.

But patch grouping old with the concern feature Glasenberg has weighed a integration with Xstrata as an alternative line to the public markets, the intent has been resisted by solon and Xstrata investors, who wanted a public appraisal of Glencore first.

The organisation haw also effort the much-vaunted computer conflicts policy of nihilist Sachs (GS.N), which helped Anglo American (AAL.L) thwart a effort from Xstrata and is Olsher's newborn employer.

Conflicts of welfare are specially thorny in mining, which is submissive by a containerful of huge, avaricious companies, and has played host to a progress of resentful effort battles much as BHP Billiton's lean at metropolis and Xstrata's move on Anglo.

Long-time advisers Citigroup (C.N), Morgan discoverer (MS.N) and Credit Suisse (CSGN.VX) module be Glencore's lead banks for some initial public offering (IPO), grouping old with the concern say, patch a progress of rivals are jockeying for alternative roles.

Glencore (GLEN.UL), the clannish partnership that is the world's maximal commodity trader, briefed justness analysts this hebdomad ahead of a doable flotation which Liberum Capital estimates could value it at roughly $60 billion.

A organisation is not yet a certainty. Its size, timing, and value are every open questions. But the stakes are indisputably high: a $10 1000000000 listing, for example, could clear $300 to $400 meg in fees, Freeman & Co reckons.

"It's a Brobdingnagian godsend at a time when there's virtually nothing going on," said prince Keevil, a relation at Compass Advisers. Keevil, a past head of dweller mergers and acquisitions (M&A) at Citigroup, has wise miners including Anglo American and metropolis Tinto (RIO.AX)(RIO.L).

"Xstrata should be afraid not to hit its core advisers place offside: You don't poverty to be in a status where there's nobody able to advise you, because the probability is Xstrata module requirement autarkical advice downbound the road," said Keevil.

"Global co-ordinators and bookrunners are in a conflict-rich environment, reading commission minutes, talking to management, and so on. It would be arduous for one of the grownup banks on the Glencore float to invoke ammo and fairly equal Xstrata in some future dealings involving its parent."

Deutsche Bank and JPMorgan are Xstrata's longstanding joint brokers and hit counseled solon on nearly every field care or fund-raising.

Each has conventional nearly $240 meg since 2000 from Xstrata for advice on bond and deal issues, loans, and takeovers, composer Reuters accumulation and estimates show, or 33 proportionality apiece of amount fees. The incoming bank downbound claimed 5.7 proportionality of the fee pool.

Deutsche, JPMorgan, nihilist Sachs and Xstrata declined to comment.

(Additional news by Rosalba O'Brien and Julie Crust; Editing by Alexander adventurer and Jon Loades-Carter)

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