Miner Anglo American Rejects BHP's $38.8 Bn Takeover Bid

London, (APP - UrduPoint / Pakistan Point News - 26th Apr, 2024) British mining giant Anglo American on Friday rejected a blockbuster $38.8-billion takeover bid from Australian rival BHP, arguing that it was too low.

The news came one day after BHP had launched its colossal bid, which aims to create the world's biggest listed copper producer.

"The board has considered the proposal with its advisers and concluded that the proposal significantly undervalues Anglo American and its future prospects," the London-listed company said in a statement.

"The board has therefore unanimously rejected the proposal," it said, adding that the BHP offer "contemplates a structure which the board believes is highly unattractive for Anglo American's shareholders".

Anglo advised shareholders to take no action in relation to the gigantic offer, which has the potential to fundamentally reshape the sector.

"The BHP proposal is opportunistic and fails to value Anglo American's prospects, while significantly diluting the relative value upside participation of Anglo American's shareholders relative to BHP's shareholders," said Anglo chairman Stuart Chambers.

"The proposed structure is also highly unattractive, creating substantial uncertainty and execution risk borne almost entirely by Anglo American, its shareholders and its other stakeholders."