Australia’s largest mining company will face pressure to sweeten the terms of a $60 billion bid to buy rival Anglo American amid warnings it could fall short.
BHP, Australia’s largest mining company, will face pressure to raise its $60 billion bid to buy rival Anglo American amid warnings the offer could fall short of what the takeover target’s investors are willing to accept.
Louis Crous, chief investment officer at BHP shareholder Betashares, said the offer price “may well have to be increased” to get Anglo American investors over the line.“Anglo American has underperformed peers over recent times and this included a large sell-off in December, when CEO Duncan Wanblad announced production cuts to assist with cost reductions,” Crous said.
James Whiteside, head of mining and metals corporate research at consultancy Wood Mackenzie, echoed suggestions that BHP might need to raise its offer considerably.
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