PART OF THE WEEK: All eyes are on Anglo American as the deadline for rival BHP to make a formal takeover bid looms

All eyes will be on Anglo American this week as the deadline for rival BHP to make a formal takeover bid looms.

BHP has until 5pm on Wednesday to do this.

A takeover of London-listed Anglo could be the biggest deal the sector has ever seen.

Anglo, whose empire includes De Beers diamonds, a potash mine in Yorkshire and vast copper and iron ore deposits, has agreed to enter talks with suitor BHP after rejecting the Australian miner’s £39 billion bid .

It marked a major concession from the Anglo board, which had rejected previous bids worth £31 billion and £34 billion.

The decision to talk could pave the way for a deal.

City analysts have said a bid of £40 billion or more could seal a takeover for the FTSE 100 group.

But investors will be watching closely to see if other predators strike.

Rumor has it that Glencore and Rio Tinto are both considering an approach.

Ben Davis, an analyst at Liberum, has suggested that a combined bid from BHP and Glencore could provide enough firepower to get a deal over the line.

Shares have risen higher following the takeover talks. Anglo’s value has risen by more than a quarter since the end of April.