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Anglo American rejects BHP’s third bid, extends deadline

Anglo American (LON: AAL) rejected on Wednesday a third takeover bid by BHP (ASX: BHP) that valued the company at $49.2 billion (£38.6bn), but it has agreed to extend the deadline for the world’s largest miner to make a formal offer.

BHP now has until May 29 at 5pm GMT time to table a binding bid for its smaller rival, which is simultaneously working on a radical business overhaul that will see it divest its less profitable coal, nickel, diamond and platinum units.

The latest, already rebuffed offer valued Anglo American’s shares at £29.34 based on the April 23 closing price.

“The board and its advisers have engaged with BHP and its advisers on multiple occasions with a particular focus on the proposed structure and associated risks,” Anglo American said in the statement.

“The board continues to believe that there are serious concerns with the structure given that it is likely to result in material completion risk and value impact that disproportionately falls on Anglo American’s shareholders,” it said.

More to come …

Source: MINING.COM – Read More