View the latest market trends Anglo American rejected BHP Billiton\’s $39 billion takeover proposal, saying it significantly undervalued the company.
BHP Billiton proposed an all-stock transaction plan. Anglo American must first spin off its controlling stake in South Africa\’s platinum and iron ore businesses to shareholders, and then be acquired by BHP Billiton.
BHP said on Thursday the non-binding proposal would value each Anglo American share in total at about 25.08 pounds.
Anglo American’s rejection was in line with general market expectations.
Analysts and some investors in Anglo American believe BHP\’s takeover bid is well below what would bring the 107-year-old miner to the negotiating table.
If BHP wants to start negotiations, it must raise its offer now.
BHP\’s proposal was opportunistic and failed to assess Anglo American\’s prospects.
Stuart Chambers, chairman of Anglo American, said in a statement that the proposed structure was also very unattractive and created significant uncertainty. The execution risk was borne almost entirely by Anglo American, its shareholders and other stakeholders.
Anglo American rejects BHP Billiton takeover proposal, saying it seriously undervalues company
Anglo American rejects BHP Billiton\’s $39 billion takeover proposal, saying it significantly undervalues the company
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