Anglo American (LON: AAL) a third takeover bid by BHP (ASX: BHP) that v (拢38.6bn), but it has agreed to extend the deadline for the world鈥檚 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鈥檚 shares at 拢29.34 based on the April 23 closing price. The figure represents a 47% premium on the stock value, BHP said.
鈥淏HP has put forward a final offer that would provide Anglo American shareholders with 17.8% of a combined BHP and Anglo American,鈥� chief executive Mike Henry said.
鈥淭he revised proposal is underpinned by BHP鈥檚 disciplined approach to mergers and acquisition and our focus on delivering long term fundamental value,鈥� Henry noted.
Anglo American said its board continued to have serious concerns with the structure demanded by BHP, as 鈥渋t is likely to result in material completion risk and value impact that disproportionately falls on Anglo American鈥檚 shareholders,鈥� it said.
BMO analyst Alexander Pearce noted that while BHP鈥檚 third offer isn鈥檛 a formal one, and it has already been rejected, the deadline extension would suggest that there is an 鈥渋ncreased likelihood鈥� that a deal can be reached between the two companies.
鈥淭he revised offer ratio is already at the top end of what BHP could pay to avoid dilution on an earnings before interest, taxes, depreciation, and amortization (EBITDA),鈥� Pearce wrote in a note to investors on Wednesday.
Earlier in the day, South African state-owned asset manager the Public Investment Corporation (PIC), which is Anglo American鈥檚 second largest聽investor,聽asked the target company to perform a 鈥渕eaningful revision鈥� of BHP鈥檚 proposals.