The raw materials giant Glencore is looking at the possibility of making a push against the mining company Anglo American, reports Reuters and refers to two sources.
This could lead to a bidding war for the London-listed, 107-year-old mining company.
On Friday, the Anglo American share rose around 3 per cent on the London Stock Exchange, to around £27.47 per share. stock.
Last week, Australian mining giant BHP Group submitted a £31.1 billion bid for Anglo, but this was roundly rejected. The bid corresponds to 25.08 pounds per share, which was 31 per cent above the Anglo share’s closing price on 23 April.
Anglo then communicated that the bid undervalues both the mining company and its prospects “significantly”. A portfolio manager at Tribeca Investment Partners, which owns shares in Anglo, commented that they “need to see more money on the table” before selling.
BHP is considering a higher bid
On Saturday, Bloomberg reported that BHP is considering improving its Anglo bid. The mining giant is said to have also initiated talks with its most important shareholders to gain their support. The news agency writes that a merger of BHP and Anglo will give BHP around 10 percent of the world’s copper mining supplies.
BHP must now submit a binding bid by 22 May, and according to the news agencies, it is expected that the mining giant will make a new, improved bid.
According to Reuters, Glencore has not approached Anglo American yet. For the time being, the raw materials giant’s assessments will take place internally, and they will be at an introductory level. A Glencore spokesperson says that they do not comment on market rumors or speculation.
