Anglo American Share Discussion Threads

[philanderer] 13/5/2024 13:48

BHP: Second Anglo American takeover offer has been rejected
Newsflash: Mining giant BHP Billiton has made a second takeover offer for Anglo American, and been rebuffed again.


BHP has told the City that it made its approach on 7 May (last Tuesday), and was “disappointed” to be given the thumbs down today.

BHP says:

The Revised Proposal was rejected by the Anglo American Board on 13 May 2024. BHP is disappointed that the Anglo American Board has chosen not to engage with BHP with respect to the Revised Proposal and the improved terms.

BHP continues to believe that a combination of the two businesses would deliver significant value for all shareholders.

BHP’s new proposal values Anglo American at £34bn, around three billion more than its initial offer of £31bn.

The new all-share offer is worth £27.53 per Anglo American ordinary share, with BHP still proposing that Anglo sells its stakes in Anglo American Platinum and Kumba Iron Ore, returning cash to shareholders.

BHP’s original proposal was worth £25.08 a share. But since the deal came to light last month, Anglo’s shares had surged to around £28 this morning.

Mike Henry, BHP chief executive officer, insists that the deal makes sense, saying:

BHP and Anglo American are a strategic fit and the combination is a unique and compelling opportunity to unlock significant synergies by bringing together two highly complementary, world class businesses.

The combined business would have a leading portfolio of high-quality assets in copper, potash, iron ore and metallurgical coal and BHP would bring its track record of operational excellence to maximise returns from these high-quality assets.

Shares in Anglo American are now falling – they’re down 2% at £27.22.

[tuftymatt] 13/5/2024 12:33

Revised bid of £34bn rejected according to Bloomberg.

Good luck all 👍🏻

[eggbaconandbubble] 13/5/2024 09:55

If they were previously on 2300, they must have been asleep!!!!

[philanderer] 13/5/2024 08:49

RBC raises Anglo American price target to 3,100 (2,300) pence - 'outperform'

[eggbaconandbubble] 12/5/2024 13:57

Cobourg, Thanks.

[cobourg1] 12/5/2024 11:32

From Bloomberg, here you go..

Anglo American Plc’s shareholders are pushing the company to speed up the release of its turnaround plan as the 107-year-old miner seeks to present an alternative to BHP Group Ltd.’s takeover bid.

Anglo has been reviewing its business since mid-2023, looking at every mine in its portfolio to help reshape a company that’s fallen behind competitors in recent years. Yet that process was broadsided by a takeover approach last month from the world’s biggest miner.

Now, Anglo shareholders have been urging the company to expedite that analysis and explain to investors how it would create more value than by just selling to the rival, according to conversations with five of Anglo’s biggest holders, who asked not to be identified as the discussions are private.

Anglo may unveil the strategy as soon as the coming week, when the world’s top mining bosses attend Bank of America Corp.’s annual conference in Miami, according to people familiar with the matter.

Still, the situation remains fluid and Anglo is weighing the best time to show its hand, with BHP expected to return with a fresh bid and activist investor Elliott Investment Management, which has emerged as one of Anglo’s biggest shareholders, potentially planning to make its views public too.

An Anglo spokesman declined to comment.

Read more: South African Unions Urge Anglo Holders To Reject BHP Bid

Anglo Chief Executive Officer Duncan Wanblad told investors in February that while there was urgency about the company’s review, there was a danger of making decisions at a wrong point in the cycle.

The mining industry has been captivated by BHP’s move, watching to see what comes next. BHP likely will return with a fresh offer, but sitting on the sidelines is Elliott.

BHP presented its own vision for Anglo: separate two giant South African businesses and buy the rest, including the company’s copper mines, its crown jewels.

Read more: BHP CEO Flies to South Africa to Push $39 Billion Takeover

Anglo quickly dismissed BHP’s proposal, saying the value was too low and the spinoff plan was unworkable. Still, investors want to know what Anglo plans to do with the diamond business De Beers, the $9 billion Woodsmith fertilizer project underway in northern England, and those South African units.

Investors have pushed the company to slow spending on Woodsmith, bring in a partner, or even halt development altogether, some of the people said. The company is currently spending about $1 billion a year on the project.

In addition, some see De Beers as a strange fit for Anglo — diamonds are a discretionary product and require significant marketing in a way other commodities don’t — and its growth options are limited.

Still, De Beers is seen as a trophy asset, so while diamonds are at a low point, Anglo won’t accept a lowball offer.

— With assistance from Loukia Gyftopoulou and Jack Farchy

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[eggbaconandbubble] 12/5/2024 07:40

Phil, Please can you cut and paste that? Looks interesting.

[philanderer] 11/5/2024 19:34

Anglo Investors Tell Company to Move Faster to Survive BHP Bid


++ Shareholders want to know if turnaround plan beats selling

++ Miner may unveil new strategy at Bank of America conference

[pander45] 11/5/2024 12:22

Which is exactly what I said when you were advocating 28.

[philanderer] 11/5/2024 09:08

Morning guys.

I'd take 3000p if it was on the table.

[bargainsniper] 11/5/2024 07:42

I'd be pleased if Rio seals a deal

[tuftymatt] 11/5/2024 07:12

It's clear if the two heads get together the simple question of what's this going to cost to get done will be tackled in some way, shape or form.

BHP / Mike Henry clearly wants this as why bother with a face to face if he had no intention of raising his opening bid. With almost 2800 seen yesterday I now feel the market thinks it will go for closer to 30000.

Was 2500 mentioned as the number around the 31bn offer. If so circa 40bn would equal 32500!!

Good luck all 👍🏻

[philanderer] 10/5/2024 23:51

Anglo American PLC (LSE:AAL), the mining company, saw its shares rise 1.5% after reports indicated Rio Tinto might be interested in making an offer.

The FTSE 100 miner has been at the centre of takeover interest from industry rivals.

Last month, the group rejected an offer from BHP as management claimed it significantly undervalued the company.

Last week, reports revealed Glencore was mulling a bid.

Now it's Rio Tinto's turn, with Australian reports indicating it was also considering tabling an offer.


PROACTIVEINVESTORS.CO.UK

[philanderer] 10/5/2024 23:02

BHP boss to meet his counterpart at takeover target Anglo American after seeing his £31bn bid for rival rejected


Mike Henry, the mining giant's chief executive, and his counterpart at Anglo, Duncan Wanblad, are due to speak at the Bank of American Global Metals, Mining and Steel Conference in Florida on Tuesday.

Sources told the Mail the pair will hold talks off stage at the industry jamboree in Miami.

The meeting will set tongues wagging after Anglo rejected a £31billion takeover offer from BHP, branding the bid 'too low' and 'highly opportunistic'.

It is understood that BHP is preparing to table a higher offer – thought to be in the region of £40billion

[eggbaconandbubble] 10/5/2024 06:45

That FT article is behind a paywall, however one can read it by going to the BBC News website and scrolling down the national newspapers front pages section. But be quick cos the Beeb remove it early on in the day!

[philanderer] 09/5/2024 23:31

Anglo American’s key South African shareholders are open to a takeover offer from BHP....

The investors, which collectively hold more than 15 per cent of Anglo, told the Financial Times that BHP would need to sweeten its offer but they were not opposed in principle to an acquisition by the Australian group.

[pander45] 09/5/2024 20:55

It ain't going for less than 30.

[tuftymatt] 09/5/2024 14:49

Yeah based on the jump if it was going to be 3000 it would move to 2900 and something I think.

2800 sounds more realistic to me too.

Good luck all 👍🏻

[philanderer] 09/5/2024 14:38

Pander , I reckon a revised bid is coming but not near 3000p ... 2800p maybe ?

[pander45] 09/5/2024 14:19

30 bid incoming?

[philanderer] 09/5/2024 13:48

Leaking maybe ?

[philanderer] 09/5/2024 09:13

'Challenges mount for BHP's bid on Anglo American'

[1knocker] 08/5/2024 12:58

It is a tricky one. If the takeover interest is going to fizzle out, now would be a good time to sell and look to repurchase cheaper. On the other hand, if hopes are bouyed by revised /improved offers from BHP and Glen (and perhaps others) now is not the time to be out.

Personally, I have never much liked Anglo's fine diamonds business, which requires a lot of expenditure to buy in stones to keep the market tight, and upon fashion for sales volume. It does provide diversification, but if they could find someone to unload that to now that competitors are running the rule over their assets I would applaud.

[cobourg1] 08/5/2024 10:05

The BHP CEO went to South Africa last week, I presume to talk to politicians. If BHP put in a revised bid it will be some kind of an indication that they think they can complete the purchase. Or have I got it wrong as usual?