* 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 stock closed Tuesday at 5.1 pence
(Adds background, quotes)
By Abhinav Ramnarayan
LONDON, Feb 19 (Reuters) - London-based hedge fund Odey
Asset Management said it would vote against Anglo American's
bid to acquire Sirius Minerals at the current
offer price of 5.5 pence per share, saying the terms do not
represent fair value.
Odey, which recently became a shareholder in Sirius and held
a 1.29% economic interest as of Feb. 18, said in an open letter
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.
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
struggling Sirius.
Sirius Chairman Russell Scrimshaw said at the time if the
bid was not approved, there was a high probability the business
could be placed into administration or liquidation within weeks.
But Odey said on Wednesday the offer seems "to make a
mockery of both internal and external audits at Sirius".
Sirius Minerals, which aimed to mine for fertiliser under a
national park in North Yorkshire in northern England, fell into
trouble when it struggled to find financing in private markets,
last year scrapping a plan to raise $500 million in a bond sale.
Its share price has fallen 75% since the start of 2019
despite a recent bounce when news of the Anglo American bid
first broke.
(Reporting by Abhinav Ramnarayan
Editing by Sinead Cruise and David Holmes)
Anglo American (AAL)
