...not all takeovers are good, they tend to favour the acquiree more than the acquiror.
...what is it in Anglo American that BHP sees as important enough to dilute BHP shareholders?
...reinforcing copper stranglehold? Or the need to get bigger before it faces its mega class action suit later in the year? BHP lobs takeover bid for $56b Anglo American
BHP has lobbed a takeover bid for $56 billion British resources heavyweight Anglo American in what would be one of the biggest deals in mining this year.
London-listed Anglo American confirmed the all-scrip offer from BHP on Thursday, but did not disclose the offer price. Ahead of any transaction, Anglo-American would spin off its Anglo American Platinum and Kumba Iron Ore divisions to its shareholders.
Anglo American said the offer from BHP was unsolicited and non-binding. It has set a May 22 deadline for BHP to provide firm details on its offer or walk away.
“There is no certainty that any offer will be made nor as the terms on which any such offer might be made,” said Anglo-American, which is reviewing the proposal.
Anglo American has steel-making coal and manganese mines in Australia and is one of the world’s biggest copper producers. It also produces nickel, diamonds, iron ore and platinum from mines spread across Brazil, China, Peru and South Africa.
Shares of Anglo American have fallen 12 per cent over the past 12 months, giving the company a market value of £27 billion. BHP has a market value of about $230 billion.
Anglo American reported a steep fall in profit and lowered its dividend after a slump in key commodities it produces. In recent months, it has written down the value of its De Beers diamond unit by $1.6 billion and dramatically slashed its copper production goals.
The company has also proposed cutting 3700 jobs across its South African platinum operations and took a writedown on its nickel business.
