The prominent stockbroker has told his clients the strategy to buy the whole company to just get its copper and coal mines “seems crazy to us”.
says the next chief executive of BHP could be left with “a complete mess” if the company acquires Anglo American in the belief it can subsequently sell the non-core assets at good prices., which proposed to issue about $40 billion worth of new shares to Anglo investors in exchange for control of the struggling diversified miner.reported earlier this week that Argo Investments and Wilson Asset Management, two BHP investors, said they were satisfied value could be created through the takeover.
“In our view, this deal really does have the potential to be a complete mess for BHP long term,” Mr Aitken wrote in a note to clients of Aitken Mount Capital Partners. “This is like BHP is trying to buy a six-bedroom house, just to get the garage. There are multiple large risks in BHP long term in trying to sell off the assets they don’t want.
“The chairman and CEO are both scheduled to leave the company within two years leaving yet another BHP deal that leaves shareholders carrying the can while management have left with no consequences,” said Mr Aitken.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
BHP ASX AAL LON: BHP lobs takeover bid for $56b Anglo AmericanThe BHP all-scrip offer values Anglo American at £31.1 billion ($59.6 billion) with Anglo American investors to receive 0.7097 of BHP stock for each share.
Read more »
BHP-Anglo takeover: Anglo American’s predictable bid rejection won’t end BHP’s ambitionsBHP won’t be put off the scent by Anglo American’s rejection of its $60 billion takeover. There’s too much at stake.
Read more »
BHP-Anglo American deal: BHP’s bid for Anglo casts cloud over $9b Woodsmith fertiliser mineBHP’s takeover proposal of rival Anglo American is throwing uncertainty over the future for Anglo’s massive fertiliser mine in England.
Read more »
BHP-Anglo American deal: Paul Singer’s Elliott Investment Management builds $1b Anglo American stakeThe hedge fund led by Paul Singer has built a billion dollar stake in BHP target Anglo American, placing it among its 10 biggest shareholders.
Read more »
BHP Anglo American takeover: Anglo’s stumbles made it quarry for mining’s biggest predatorAnglo American once held pride of place on the sharemarket. Now its reputation is in tatters. And for BHP, the crisis at Anglo has come at the perfect time.
Read more »
ASX BHP: Japan Inc backing for nickel mine has ramifications for BHPSumitomo and Mitsubishi have agreed to back Ardea Resources and its $3.1 billion nickel laterite and cobalt project, about 80 kilometres from Kalgoorlie and BHP’s ageing nickel smelter.
Read more »