Anglo said the bid significantly undervalued the London-listed miner and its future prospects
Anglo American rejected rival miner BHP Group’s £31.1-billion takeover proposal on Friday, saying the bid significantly undervalued the London-listed miner and its future prospects.
A condition of its proposal is that Anglo first distributes to shareholders its stakes in Anglo American Platinum and Kumba Iron Ore, both of which operate in South Africa where BHP has no assets. “With regards to a price, I think it’s pretty clear that the initial shot fired is just that. It’s just the first shot – it’s not their best and final,” said Todd Warren, a portfolio manager at Tribeca Investment Partners in Sydney, which holds shares in Anglo.Questions about jurisdictional risks in South Africa and other regions, and concerns that Anglo American’s businesses are lower margin than BHP’s led to a share sell off, said RBC Capital Markets analyst Kaan Peker in Sydney.
Consensus is growing that BHP will have to sweeten its offer to get the deal done. BHP has until May 22 to make a binding bid.
Anglo Deal Cent Share Miner Proposal Shot BHP Glencore RBC Capital Markets
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