BHP tells investors Anglo bid is 'on strategy', stresses discipline
SYDNEY - BHP has told Australian investors privately that its $39-billion Anglo American bid is in line with its strategy and that it will be disciplined in its approach, two fund sources said.
The world's biggest listed mining group is weighing up its next move after its initial takeover proposal for its smaller competitor was rejected by Anglo last week.
"They could not say much, but kept reiterating that they have to be disciplined," said a portfolio manager at one fund who spoke to BHP's investor relations team on Monday.
Both BHP investors said they saw value in a deal given Anglo's quality copper assets and long term copper prices, and would be open to BHP raising its offer. They declined to be named as the talks were private.
"We are receptive to the deal. We potentially would be supportive if BHP raised their offer," said the first investor.
In a parallel process, BHP adviser UBS has begun booking meetings with fund managers for this week, three sources with direct knowledge of the matter said.
The talks indicate the effort that BHP is making to fine tune a revised proposal for Anglo.
Reuters reported over the weekend, citing a source, that BHP is considering a renewed bid for London-listed Anglo.
The investor meetings being sought by UBS will focus on gaining granular details on how BHP shareholders think a second bid should be structured, the first source said. That feedback would then be given back to BHP, the source added.
The sources declined to be named as the information being discussed was not public.
BHP and Anglo declined to comment. UBS did not immediately respond to a request for comment.
Anglo shares in London were up 1.87% to 26.92 pounds. BHP shares closed 0.42% lower at A$42.97 in Australia.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
Rittal is a world leading provider of top-quality integrated systems for enclosures, power distribution, climate control, IT infrastructure and...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
