Top Anglo American shareholders criticise BHP’s £31bn bid as ‘opportunistic’

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Anglo American’s largest shareholders have criticised BHP’s £31bn proposal to take over its London-listed rival as an “opportunistic” bid that substantially undervalues the company. 

The move by the world’s biggest mining group came after Anglo had suffered its worst one-day share price drop in 15 years in December preceded by a period of its stock underperforming versus its peers.

Nick Stansbury, head of climate solutions at Legal & General Investment Management, Anglo’s 11th-largest shareholder, said that BHP had made a “highly opportunistic approach” that is capitalising on Anglo’s “depressed” valuation and represents “an unattractive proposition for long-term investors”.

“The offer price has the feel of an initial bid which you hope would be revised higher,” added Iain Pyle, a fund manager at Abrdn, which is a top-25 shareholder in Anglo. “It feels opportunistic.”

A third investor, who is a top-20 shareholder in Anglo, said that the bid price was “way off”. He added: “If I was a BHP shareholder and I was still capable of doing a cartwheel I’d do two if I got it at this price.”

BHP’s takeover offer for Anglo would bring together two global mining companies and rank as one of the industry’s largest transactions in years. The Australian group said on Thursday that it had offered 0.7097 BHP shares for each Anglo share, as it sought to expand its portfolio of copper mines, a mineral for the decarbonisation of the global economy.

BHP said its offer valued each Anglo share at £25.08. Anglo shares rose 13 per cent to £24.89 in early trading in London, giving the company a market capitalisation of £30.5bn.

Anglo shares surged 13.5 per cent to £24.9 in London, giving the company a market capitalisation of £33.2bn.

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