Anglo American Rejects BHP's "Highly Unattractive" $39bn Bid
April 26, 24
(IDEX Online) - Anglo American, parent company of De Beers, today (26 April) said it had rejected a "highly unattractive" $39bn all-share offer from rival miner BHP.
The board unanimously decided to turn down the offer, saying it was too low and "significantly undervalues Anglo American and its future prospects".
The UK-based mining giant said its announcement was "not being made with the agreement or approval of BHP." There was no response from BHP.
Any takeover by Australia-based BHP would almost certainly involve a sell-off of De Beers, which does not fit its business model.
Anglo's rejection of the offer - albeit based on price rather than principle - could now open the way for Glencore, Rio Tinto and other mining corporations to put in rival bids.
"The BHP proposal is opportunistic and fails to value Anglo American's prospects, while significantly diluting the relative value upside participation of Anglo American's shareholders relative to BHP's shareholders," said Stuart Chambers (pictured), Anglo's chairman.
"The proposed structure is also highly unattractive, creating substantial uncertainty and execution risk borne almost entirely by Anglo American, its shareholders and its other stakeholders.
"Anglo American has defined clear strategic priorities - of operational excellence, portfolio, and growth - to deliver full value potential and is entirely focused on that delivery."
Under UK takeover rules BHP has until 22 May to make a formal bid.