Anglo American Rejects BHP Takeover Bid
Anglo American has rejected a $60 billion takeover proposal from rival BHP, stating that the bid significantly undervalues the company and its future prospects. In a statement, Anglo American's board unanimously rejected the proposal, deeming it unattractive for shareholders.
Anglo American chairman Stuart Chambers described the proposal as "opportunistic" and criticized its structure, highlighting the substantial uncertainty and execution risk it would place on Anglo American and its stakeholders. He emphasized that Anglo American is focused on delivering its full value potential through its defined strategic priorities of operational excellence, portfolio, and growth.
The announcement of BHP's bid followed an unusual spike in Anglo American's share price on the London Stock Exchange. The share price rose by 2.8% between 3pm GMT and the market close on Wednesday, while its peers experienced only modest gains. This late surge has raised questions about potential information leaks and prompted calls for an investigation by the Financial Conduct Authority (FCA).
BHP's offer involved paying 25.08 British pounds per Anglo American share, representing a 31% premium over Wednesday's closing price. The proposal also included spinning out Anglo American's iron ore and platinum assets in South Africa, where BHP has no operations.
While Anglo American has rejected the bid, the future remains uncertain. The FCA's potential investigation into the share price spike could shed light on the situation, and BHP may choose to revise its offer or pursue other options.