Shares in BHP have dropped 5.2 per cent since it made the $60 billion bid for Anglo-American that was swiftly rejected last week.
Already a subscriber?The world’s largest miner, BHP, has been warned not to lob a “value destructive” improved bid for Anglo American and risk over-paying to secure the coveted copper assets contained in the beleaguered London-listed target’s empire.
BHP shareholder Prasad Patkar from Platypus Asset Management cautioned the Melbourne-based miner: “As a rule, large M&A is value destructive,” he said.Eamon Gallagher Mr Patkar added: “We are holders of BHP and are concerned about the bid. It seems to be an industry plagued with short memories of how badly large M&A has destroyed shareholder value. We would hope that the BHP board exercise discipline.”Anglo American last week dismissed BHP’s approach as “opportunistic” and failing to adequately value its prospects, primarily its copper assets, a desirable metal needed for decarbonisation, electricity transmission and data centres.
It had attributed the slump partly to its diamonds business but argued that demand trends for metals and minerals generally have “rarely looked better”.Chief executive Mike Henry is
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