Reported 5 months ago
After rejecting a third takeover offer from BHP valued at 38.6 billion pounds, Anglo American has agreed to a one-week extension for BHP to make a binding offer. The proposal is conditional on Anglo unbundling its platinum and iron ore assets in South Africa. Anglo's concerns about completion and execution risks in BHP's proposal may hinder the deal, with investors being skeptical. The South African government is closely monitoring the situation, and BHP's proposed deal deadline coincides with a national election in the country. Analysts suggest BHP may need to increase its offer by around 30% to reflect the fair value of Anglo and its copper assets in Chile and Peru.
Source: YAHOO