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BHP’s options for Anglo American deal narrow as deadline looms
By Jerry
MELBOURNE, May 15 (Reuters) – BHP Group’s (BHP.AX), opens new tab options for its pursuit of rival miner Anglo American (AAL.L), opens new tab include sweetening its $42.7 billion buyout offer, making a hostile bid or walking away for now as it approaches a May 22 deadline to lodge a binding offer.
As BHP weighs its next move, CEO Mike Henry and his team have been making the case for the mega-deal on the sidelines of an investor conference in Miami and elsewhere to its investors, a large proportion of whom also hold shares in Anglo.
“At this stage I think it is up to BHP to try to convince enough of Anglo’s institutional shareholders over the coming week that it’s worthwhile pressuring their board to engage with BHP, with a potentially even higher offer on the table should this occur,” Morningstar analyst Jon Mills said.
Anglo’s board has already knocked back two all-share proposals from BHP as inadequate and too difficult to execute and on Tuesday unveiled plans for a break-up to focus on energy transition metal copper while spinning out or selling its less profitable coal, nickel, diamond and platinum businesses.
That plan met with a mildly supportive response from Anglo investors, who said it provided a strategy but was short on details.
Source: REUTER
