Anglo American has rejected BHP’s request for more time to negotiate a $75 billion takeover offer, meaning the deal is off for at least six months, unless BHP lobs a formal bid by 2am. BHP is unlikely to make a bid before the deadline.
Already a subscriber?Diversified miner Anglo American has rejected BHP’s request for more time to negotiate a $75 billion takeover offer, meaning the Australian suitor has to lob a formal takeover bid within hours or cease its pursuit of Anglo for six months.
The statement was published shortly after 7pm Sydney time on Wednesday, about six hours and 44 minutes before the deadline.If BHP does not launch a formal offer before 2am on Thursday Sydney time, it will be forced to put its ambitions on ice, for now. BHP was unlikely to make a bid before the deadline.
Anglo believes such conditions would destroy value for its shareholders, and BHP’s offer needs to better account for that value destruction. In a reference to the Kumba and Platinum businesses, BHP said it was also willing to share the costs of “increased South African employee ownership of the listed South African businesses”.
“This value risk would therefore be exclusively for the account of Anglo American’s shareholders under the BHP proposal, as well as eroding the value of the shares held by the minority shareholders of both subsidiary companies.”
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