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The second shot also missed. BHP has come forward with a new purchase proposal for Anglo American, increasing the share swap ratio by 15% and bringing the value of the mining group to 43 billion dollars, compared to the previous 39 billion. But it was rejected again, with the same reasons given in response to the first approach, which took place in April.
The offer “continues to significantly undervalue Anglo American and its future prospects” and “continues to contemplate a structure that the board believes is very unattractive to shareholders given the inherent uncertainty and complexity, and significant execution risks” , we read in a note from Anglo, released on Monday 13th, a few hours after Bhp had revealed that it had returned to the charge without success.
The further refusal is actually not surprising: the only concession by BHP was to open the purse strings a little more, but in any case through a share exchange, without offering cash. And above all, the acquisition remains conditional on the preventive spin-off of the South African subsidiaries Amplats and Kumba Iron Ore, active in platinum and iron ore: a request that Anglo immediately made clear that it considered unacceptable, because it penalized its shareholders.
There is a considerable amount on the table, which would make a possible takeover the richest in history for the mining sector. In these terms, however, BHP’s new proposal seems to be a blank shot: not so much to hit the target but rather to hasten a reaction on the part of the prey and perhaps also to force other hunters – if they exist – to go out uncovered.
Metaphor aside, there are several mining groups about which there are rumors of an interest in Anglo or perhaps, more likely, in some of its assets: the most cited are Glencore and Rio Tinto, who however are in no hurry to come forward and in this phase they are probably waiting to have a more defined picture of the situation.
