European shares up, Glencore jumps on plan to cut debt
* FTSEurofirst 300 index up 0.8 percent
* Glencore surges after plans to cut debt
* German industrial output rises in July
By Atul Prakash
LONDON, Sept 7 (Reuters) - European shares bounced back on Monday from sharp declines in the previous session, boosted by mining and commodities trading firm Glencore which rose after announcing plans to cut its debt.
The pan-European FTSEurofirst 300 index was up 0.8 percent at 1,404.12 points by 0758 GMT, after closing 2.5 percent lower on Friday when a mixed jobs report fuelled uncertainty about the timing of a likely U.S. rate hike.
Glencore shares surged 8 percent, the top gainer in Europe, after the company said it will suspend dividends, sell assets and raise $2.5 billion in a new share issue to cut its debt by a third to $20 billion by the end of next year.
"Concerns regarding the group's balance sheet have weighed heavily on the share price in recent weeks. Whilst uncertainties regarding prospects for China and its impact on the mining sector remain, Glencore management appear to be taking firm action to try and remove the company from the eye of the storm," Keith Bowman, equity analyst at Hargreaves Lansdown, said.
The company has been under pressure to cut debt as prices for its key products, copper and coal, have sunk to more than six-year lows on concerns about China's economic growth. Even with Monday's bounce, its shares are still down more than 50 percent this year after hitting record lows last week. Continuación...