Mike Henry has finally got what he always wanted – a chance to convince the Anglo American board of the merits of his deal. But he’s paid a hefty price to get here.
Already a subscriber?The BHP chief executive has finally got his foot in the door of the boardroom of Anglo American byWhile Anglo has unanimously rejected the new offer – priced a whopping 67 per cent higher than where Anglo’s shares sat on the day before news of this deal leaked – it has given BHP a one-week extension of talks between the two parties.
But for BHP investors, there will be obvious concerns whether Henry has kept his prized discipline by bidding against himself for a second time.The logic behind BHP’s bid always revolved around two ideas. First, while many of Anglo’s assets were rubbish, its copper assets and its Queensland coal mines, which sit next door to BHP’s own, were highly attractive. Second, Anglo was under real pressure from its frustrated shareholders, and could be snapped up for a relative bargain.
The reaction in overnight trade on overseas sharemarkets – BHP lost 4.7 per cent in New York and 4.3 per cent in London – provides the market’s early verdict. Australian investors were more circumspect, with the stock down 2.7 per cent on Thursday.
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