* Current Anglo offer 'makes a mockery' of valuation, Odey
says
* Hedge fund will vote in favour at 7 pence per share or
above
* Sirus Minerals rises around 1%
* Anglo has no comment, Sirius has no immediate comment
(Adds no comment from Anglo, context)
By Abhinav Ramnarayan
LONDON, Feb 19 (Reuters) - London-based hedge fund Odey
Asset Management said it would oppose Anglo American's
bid to acquire a huge fertiliser project from Sirius Minerals
at 5.5 pence per share, saying the terms do not
represent fair value.
The asset under a national park in North Yorkshire is
Britain's biggest mining project and has political resonance as
the government works to create more jobs in the
economically-disadvantaged north of the country.
Its future was in jeopardy until major miner Anglo American
made its bid for the project whose viability some analysts have
questioned, but Odey said Anglo's offer was too low.
In an open letter, Odey, which held a 1.29% economic
interest in Sirius as of Feb. 18, said it would vote in favour
of any bid at 7 pence per share or above.
"The lack of 'final' offer, in Odey's opinion, suggests that
Anglo American would be willing to bid substantially more for
Sirius, with the investment case remaining highly attractive for
Anglo American, even at a materially higher bid level," the
hedge fund said in the letter.
A spokesman for Anglo American declined to comment and
Sirius had no immediate comment.
Anglo American agreed last month to buy Sirius Minerals for
404.9 million pounds ($526.2 million) in cash, marking the
global miner's return to fertilizer and throwing a lifeline to
Sirius.
Sirius Chairman Russell Scrimshaw said then that if the bid
were not approved, there was a high probability the business
could be placed into administration or liquidation within weeks.
Odey said on Wednesday the offer seems "to make a mockery of
both internal and external audits at Sirius".
Sirius Minerals struggled to find financing in private
markets and last year scrapped a plan to raise $500 million in a
bond sale.
Its share price has fallen by around 75% since the start of
2019 despite a bounce when news of the Anglo American bid broke.
By 0938 GMT on Wednesday, the stock had rallied slightly to
trade nearly 1% higher at 5.18 pence, roughly in line with the
broader market
The share price fall has hit many local people who invested
in the plan to develop what Sirius has said is the world's
largest deposit of polyhalite, a multi-nutrient fertiliser.
Anglo American, in announcing its bid for Sirius, said it
was taking advantage of a rare chance to buy near the bottom of
the market, but some analysts are sceptical, saying there is no
established market for polyhalite.
(Reporting by Abhinav Ramnarayan; Editing by Sinead Cruise,
David Holmes and Barbara Lewis)
