Anglo American has rejected a raised buyout proposal of £34 billion ($42.67 billion) from rival miner BHP as it “continues to significantly undervalue” the company, reported Reuters. This follows an initial rebuffed all-share bid of £31.1 billion ($39 billion).
“The latest proposal from BHP again fails to recognise the value inherent in Anglo American,” said Stuart Chambers, Anglo American chairman.
The news agency said the latest offer was 10% higher than the first, lifting Anglo American shareholders’ aggregate ownership in the combined group to 16.6%.
“We are disappointed that this second proposal has been rejected,” BHP CEO Mike Henry said. “BHP continues to believe that a combination of the two businesses would deliver significant value for all shareholders.”
The revised bid once again required Anglo to sell its shares in South African iron ore and platinum assets. “The BHP proposal … leaves Anglo American, its shareholders and stakeholders, disproportionately at risk from the substantial uncertainty and execution risk created by the proposed inter-conditional execution of two demergers and a takeover,” Chambers said.
If a deal between the two rivals eventually goes through, it would create the world’s biggest copper miner, which would account for about 10% of global output of the metal.
Source: Reuters