Anglo American rejects BHP's revised $42.7-billion buyout proposal
Business
Anglo American rejects BHP's revised $42.7-billion buyout proposal
LONDON (Reuters) - Anglo American (AAL.L), opens new tab rejected a raised takeover offer of 34 billion pounds ($42.67 billion) from BHP Group (BHP.AX), opens new tab on Monday, saying the world's largest listed miner "continues to significantly undervalue" the company.
The London-listed miner had already rebuffed BHP's initial $39 billion all-share takeover proposal, made on April 25, dismissing it as opportunistic and saying it would dilute the upside value for its shareholders relative to BHP's.
"The latest proposal from BHP again fails to recognise the value inherent in Anglo American," chairman Stuart Chambers said on Monday.
The new offer, made on May 7, was 10% higher than BHP's first, or a 15% increase in the merger exchange ratio that would lift Anglo American shareholders' aggregate ownership in the combined group to 16.6% from 14.8% in the earlier proposal.
"We are disappointed that this second proposal has been rejected," BHP's CEO Mike Henry said in a statement.
"BHP continues to believe that a combination of the two businesses would deliver significant value for all shareholders," the statement added.
The revised bid is still contingent on Anglo selling its shares in iron ore and platinum assets in South Africa, a structure Anglo says is unattractive.
Anglo's share price reversed earlier losses to trade up 1.3% 27.73 pounds by 1411 GMT.
