BHP boss Mike Henry has taken his takeover pitch directly to Anglo American investors. But the hurdles to this bid are multiplying, and time is running out.
With the Anglo American boardroom still firmly shut to BHP’s advances, Mike Henry is taking his takeover campaign directly to the people who will ultimately decide the fate of his twice-rejected bid.
And the fact Anglo’s board is now refusing to even provide the sort of due diligence BHP says could lead it to increase its bid, means Henry has had little choice but to make his pitch to Anglo investors in the hope they might force Wanblad to the negotiating table. It took BHP itself more than three years to sell five Australian coal assets, for example; the regulatory approvals required and the financing challenges involved in modern mining deals mean M&A can be painfully slow.
On numbers from consultancy Wood Mackenzie, Anglo could aim to realise up to $US25 billion in value through Wanblad’s divestments and demergers, potentially lifting its net asset base value by $US9.1 billion.
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