"Anglo American Vulnerable to Another Takeover Bid"

(IDEX Online) - Anglo American, parent company of De Beers, may now be more vulnerable to a takeover bid than it was in May, when it fought off an approach by rival miner BHP.

The UK-based conglomerate has seen its share price plunge by almost a quarter since then and has suffered a devastating fire at Grosvenor, its flagship coking coal mine.

That was among one of the assets Anglo said it would ditch, in order to focus its energies on copper and other more profitable commodities.

The company said it would also divest or demerge its diamond (De Beers), platinum, and nickel assets.

Anglo rejected BHP's increased bid of $49bn back in May. But BHP is allowed to make another in November, and there is speculation that Glencore, Rio Tinto and others could make their own approaches as well.

"The upshot is that Anglo may soon become more vulnerable to a takeover than before - and at a lower price - having snubbed a £39bin ($49bn) offer from the world's biggest miner," says thisismoney.co.uk, in a story headlined Anglo American braced for fresh takeover turmoil: De Beers owner left vulnerable as shares slide.

"The lower Anglo American's share price goes the more vulnerable the company may be to a predator, who could decide the miner comes with a price tag low enough to offer downside protection if anything goes wrong and sufficient upside to compensate for the risks involved,' Russ Mould, investment director at investment platform AJ Bell, tells the site.