Anglo rejects BHP’s third offer, but open to engage

Anglo American last week rejected a third takeover proposal from BHP Group that valued the company at £ 38,6 billion (US$49,18 billion), but agreed to a one-week extension for its rival to table a binding offer.

The move marks the third unsuccessful offer in a month from BHP, the world’s biggest listed mining group, as Anglo works on a radical plan to divest its less profitable coal, nickel, diamond and platinum businesses.

The £29,34 per share approach, based on undisturbed share prices at market close on April 23 and raised from an initial £25,08, is still conditional on Anglo unbundling its platinum and iron ore assets in South Africa, the country where it was founded and has deep roots, employing more than 40 000 people.

Anglo reiterated that this condition carries significant execution and completion risks.

BHP’s proposal “does not address the Board’s concerns about the structure, which results in significant complexity, execution risks, an extended timeline to completion,” Anglo chairman Stuart Chambers said in a statement.

“(It) consequently has the potential for material value leakage to be disproportionately suffered by Anglo American’s shareholders,” he added.

Anglo’s share price reversed earlier losses at £27,15, up 1 percent on Friday afternoon.

BHP said in a separate statement that it will not increase the percentage of its shares it is offering Anglo’s shareholders as part of the deal, unless a third party makes a competing offer. – Reuters