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(Alliance News) - BHP Group Ltd is considering making an improved offer for fellow miner Anglo American PLC, according to a report from Reuters on Monday.
This follows London-listed Anglo American "unanimously" rejecting an "opportunistic" GBP31.1 billion offer from larger Australian peer BHP, on grounds that it "significantly undervalues" Anglo American.
Citing a source familiar with the matter, Reuters said BHP is in discussions on a revised bid for Anglo American, which it expects will be made in the coming weeks. The source said the deliberations are ongoing, while BHP are yet to make a decision on the size and structure of the proposed deal.
BHP said it does not comment on what it called "rumour and speculation", Reuters reported, while Anglo American "did not immediately respond" to a request for comment, it said.
https://www.reuters.com/markets/deals/bhp-consider-improved-anglo-proposal-after-bid-was-rejected-bloomberg-news-2024-04-27/
Under UK takeover rules, BHP has until May 22 to make another formal offer for Anglo American.
Melbourne-based BHP previously said its initial, unsolicited, non-binding and conditional offer would have seen Anglo American shareholders receive 0.7097 of a BHP share for every share share they hold in Anglo American. BHP tabled the offer to the Anglo American board on April 16.
In a formal response, Anglo American on Friday last week said its board had considered the BHP proposal with its advisers and concluded that the offer "significantly undervalues" the company and its future prospects.
As part of the initial rejected deal, BHP wanted Anglo American to split off Anglo American Platinum Ltd and Kumba Iron Ore Ltd in South Africa.
Shares in BHP were down 1.0% to 2,228.36 pence each in London late Monday morning. They were down 0.4% to ZAR524.47 in Johannesburg and closed down 0.4% to AUD42.97 in Sydney.
Anglo American shares were up 1.9% in London to 2,693.50p and also up 1.9% in Johannesburg, to ZAR632.71. Also in Johannesburg, Anglo American Platinum was up 4.3% to ZAR661.37, while Kumba Iron Ore was up 0.1% to ZAR476.03.
By Greg Rosenvinge, Alliance News senior reporter
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