Anglo American (Baa2/BBB): Third BHP Bid
We see this as marginally positive for AALLN spreads, with the probability of the deal succeeding edging higher. Over to Anglo shareholders to push for an agreement if they see value.
• BHP’s third bid has been submitted ahead of today’s deadline at £31.11 / share equivalent, 0.886 BHP shares / share in an unchanged structure; c.13% improvement on the previous bid.
• Anglo has again rejected the bid but requested an extension to the PUSU deadline to May 29th. The board is now willing to engage with BHP.
• BHP say progress has been made mitigating Anglo’s concerns since the previous bid and are hopeful an agreement can be reached.
• They say the offer is final but reserve the right to increase in the event of a third party offer, the Anglo board announces it recommends an offer on better terms, or the takeover panel otherwise provides its consent.