Mick Davis appoints Goldman Sach to raise funds

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Mick Davis, who lost his job as chief executive of Xstrata (Other OTC: XSRAF - news) on Friday when it was taken over by Glencore, has appointed Goldman Sachs (NYSE: GS-PB - news) to rise funds.

Mick Davis, former chief executive of miner Xstrata, is believed to have hired Goldman Sachs to raise money for a comeback following his departure from the company he developed on Friday.

Mr Davis, who built up Xstrata into a $44bn (£28.3bn) FTSE 100 (FTSE: ^FTSE - news) miner from a cash shell worth less than $500m, left the group following its takeover by rival Glencore.

There had been much speculation on what Mr Davis, known in the industry as Mick the Miner, would do next. Many believing he would take up a role at a private equity group. But a report in The Sunday Times suggests he is looking at raising funds of his own by the appointment of Goldman Sachs.

Many heads of the world’s major miners have departed and the new chief executives are expected to try and streamline their portfolios and Mr Davis is likely to be seeking to raise funds to try and snap up these assets and repeat his Xstrata success.

The outgoing crop of chief executives have all been through boom and bust over the past few years, with a lot of the bust exacerbated by their own decisions. Wild prices were paid for acquisitions, leading to a series of write downs, and investment in new mines glut of supply that has helped commodity prices fall.

Former AngloGold Ashanti chief Mark Cutifani has replaced Cynthia Carroll at Anglo American (LSE: AAL.L - news) . Rio Tinto’s Tom Albanese’s re-placement is Sam Walsh, his former number two, and a search is on for Marius Kloppers’ replacement at BHP Billiton (NYSE: BBL - news) . Mr Kloppers will leave “in the next 24 months”.

Mr Davis walked away from Xstrata with a payoff worth almost £15m, after trading behemoth Glencore said he will not stay on after the merger of the two FTSE 100 giants as originally planned.