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Anglo American (Baa2/BBB): Second Proposal Rejected

BASIC INDUSTRIES

Anglo spreads may soften a touch, on disappointment that BHP have not come back with something stronger.

  • New bid implies a £34bn valuation for Anglo, a 9% improvement on the first approach.
  • Still an all-share proposal with no cash component.
  • BHP confirmed South African assets would be spun off to Anglo shareholders, which remains a tricky part of any deal.
  • Still no other bidders emerging, with conflicting media reports on the level of interest from Glencore and Rio Tinto.
  • After again not engaging with BHP, Anglo will be under pressure to reveal the results of its business review. We may get something at the BofA conference this week.
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Anglo spreads may soften a touch, on disappointment that BHP have not come back with something stronger.

  • New bid implies a £34bn valuation for Anglo, a 9% improvement on the first approach.
  • Still an all-share proposal with no cash component.
  • BHP confirmed South African assets would be spun off to Anglo shareholders, which remains a tricky part of any deal.
  • Still no other bidders emerging, with conflicting media reports on the level of interest from Glencore and Rio Tinto.
  • After again not engaging with BHP, Anglo will be under pressure to reveal the results of its business review. We may get something at the BofA conference this week.