BHP urged to improve its bid for rival Anglo American
BHP shareholders yesterday urged the mining giant to increase its bid for Anglo American in yet another takeover battle to grip the city.
The Australian company is working on a revised offer after its mining rival rejected a £31 billion approach last week.
Analysts said the offer would need to be more than £40 billion to entice Anglo to accept the deal.
A bidding war could see valuations soar – with Glencore and Rio Tinto touted as companies that could step in with a rival bid.
Anglo was this weekend forced to defend chairman Stuart Chambers, who has overseen the sale of several blue chip companies to foreign buyers, including Cambridge-based chip designer Arm.
Takeover battle: Australian mining giant BHP is working on a revised offer after its mining rival rejected a £31 billion approach last week
BHP investors told Reuters they see value in an Anglo deal because of its copper assets.
The combined company would be the world’s largest copper producer at a time when demand for the metal has soared.
Shareholders said they are open to a higher bid to win over the London-listed company’s board.
“We would potentially be supportive if BHP increased their offer,” said one shareholder.
A bid of more than £30 per share – valuing Anglo at more than £40 billion – could influence the decision, analysts said.
And Jamie Maddock, energy analyst at Quilter Cheviot, suggested there could be a rival bid from Rio Tinto and Glencore.
“These industrial giants have the capital and strategic interest to enter into such an important transaction,” he said.