It's the only way that this can go forward given Anglo's rejections. At the same time, I expect a little sweetener with regard to the price. It would be a surprise if this doesn't go ahead after all the shenanigans. |
bhp to alter the terms and conditions for deal to go forward in Australian mining news |
Saw this today:
"A successful takeover of Anglo American Plc by BHP Group could trigger a $4.3 billion outflow from South Africa, potentially weakening the rand, according to JPMorgan Chase & Co. analyst Catherine Cunningham. This outflow stems from developed-market index funds selling unbundled stocks if the deal proceeds. Despite Anglo rejecting BHP’s $49 billion bid, negotiations continue, raising the likelihood of an agreed deal and impacting Anglo American Platinum Ltd. and Kumba Iron Ore Ltd. shares."
Getting political now. |
BHP need anglo copper mines to stay ahead of the market a new bid will come in the next 2 days |
v11 your right ,Glen has not got the capital it will cherry pick . |
If the market seriously thought there would be a bid at £32 in two days time the price wouldn't be £26 now. |
morning 2 days to go , I think the final bid will come in at 3228 wot be surprised if Glencore join the party with a bid , blackrock and other major shareholder will push for a deal GLA |
what are they having cheese and crackers or champagne in the Gherkin |
Do you love the drama and whispering here? Plotted AAL against BHP just now; 2:30pm both shares start a climb; Then dip in tandem: 2:45pm BHP drifts up AAL drifts down. How much inside information is shared over City lunches? |
Anglo down because Rough diamond sales at De Beers fell in recent weeks, Anglo American said on Thursday, on the back of subdued demand. |
If the deal falls through BHP which is cheap at the moment will go up in price.
Buying some is not a bad hedge IMO.
If the deals goes through then you will be holding BHP which will asset strip Anglo and be a larger and more attractive company and pay more of a dividend than AAL.
Could be a winner, whatever happens. |
Elaborate pleaseSet up job in favour of anglo |
'set up'/stitch up.... tom-art-toe/toe-mate-toe |
What do u mean by thatIt's a setup job |
It's beginning to stink! |
 I won't say where this is from as I am probably infringing copyright and heading for Parkhurst. Let's just say that it is reliable.
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Sometimes the old ways are the best. Mike Henry’s method of adding incremental sweeteners to a lowball starting proposal to buy Anglo American Plc won’t win any awards for originality in mergers and acquisitions. But the chief executive officer of Australian miner BHP Group Ltd. has finally got his rival to engage on a potential £39 billion ($50 billion) deal. If a transaction happens, as seems increasingly possible, it will reflect the weakness of Anglo’s defenses more than the ingenuity of BHP’s tactics.
Henry’s latest proposal once again requires Anglo to stage a mini-breakup before merging what’s left of the company with BHP. Anglo would first hand its shareholders majority stakes in two South African miners it currently owns. Then its investors would swap their Anglo shares for BHP stock at a premium. On the revised version of this idea, Anglo shareholders would just get more BHP stock.
BHP values the pitch at £31.11 per Anglo share, based on its recent share price and that of the stakes to be carved out. That’s a 41% premium to where Anglo shares closed on April 24 before Bloomberg News reported BHP’s ambitions. A decline in the suitor’s stock on Wednesday afternoon has already dragged the putative value on offer lower — but it’s still a serious price.
Anglo has dismissed this while also simultaneously granting time for talks. The language of the rejection is in some ways like its previous rebuttals: BHP’s requirement that Anglo shrinks prior to a takeover adds complexity and delay. That makes it hard to know precisely what value Anglo shareholders might receive once any deal completes. But there’s one big shift. Anglo is — rightly — no longer saying BHP’s proposal significantly undervalues the business.
(NOTE THE PRECEDING SENTENCE - Cobourg )
Engaging with BHP, despite the absence of what Anglo deems an acceptable offer, makes sense for the target. BHP is in the ballpark; a proposal around this price without the do-the-splits condition would have been extremely hard to swat away. And Anglo’s new strategy, laid out last week, already includes the separation of Anglo American Platinum Ltd., one of the two listed stakes that BHP itself wants jettisoned. The objections around complexity and uncertainty can be met with a further improvement on price — either by adding cash or more stock. And the riskiness could be reduced by making a transaction conditional on carving out just the platinum business, consistent with Anglo’s own strategy. BHP has been mischievous in labeling the share ratio for its pitch “final.” The fact is it can amend that if doing so would see Anglo recommend a transaction, or if a counterbidder surfaced.
Anglo could, of course, have been much more definitive and shut the door completely. To stay in the game, BHP would then have had to make a hostile offer that, under the UK Takeover Code, would have had to come today. Doing so would have meant bidding for all of Anglo with no fiddly breakup plan — something BHP is clearly loath to do.
Nevertheless, Anglo hasn’t lost all its negotiating power by keeping BHP’s dreams alive. BHP needs an Anglo board recommendation for the two-stage transaction it so covets to succeed. Anglo can extract a higher price for giving its assent — its duty to its shareholders means that must now be its singular job. |
Tufty, I reckon you're spot on. |
Yes you don't extend the deadline unless you are close to getting something acceptable over the line.
BHP want this and as the offer goes up slowly then it's clear something acceptable to both sides will be thrashed out in the next week.
Good luck all 👍🏻 |
"Anglo Chair Stuart Chambers said the latest proposal did not address the concerns about "the structure, which results in significant complexity, execution risks, an extended timeline to completion and consequently has the potential for material value leakage to be disproportionately suffered by Anglo American's shareholders."
"Multiple engagements with the BHP team have not yet been able to resolve the concerns on these issues," he said.
Nonetheless, Anglo American requested an extension to the shut up, or put up deadline for BHP, to next Wednesday. This would allow "further engagement" with BHP, on the "mitigation of risks and value impact on Anglo American's shareholders that are inherent" in the latest proposal.
This has been granted by the Takeover Panel."
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I read this as "take off the requirement to shed South African companies and you've got a deal". |
Yes, still going the distance. What fun to see how our "honest" market-makers handle the whispers: 2:15pm price starts to rise; 2:20pm price drops sharply; 2:23pm starts to rise again; 2:32pm RNS announcement. Now it would be nice to know who leaked what and who made money here? Compliance or corruption? |
It's clearly going the distance. |
With all the due diligence carried out, these things are not cheap. To come back and take a chance with under £30 and get an extension is a great result.
Final bid coming .I certainly am excited. |
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