BHP considering improved bid for Anglo American: Reuters

The news: BHP is considering making an improved offer for Anglo American after its $60 billion initial proposal was rejected by the London-listed miner, Reuters reported citing an unnamed source.

The numbers: BHP is in discussions on the revised bid although the resources giant has not yet made a decision on the size and structure of the new proposal, the report said. It comes after Anglo American rejected BHP’s £25.08 ($50) a share offer on Friday, saying it significantly undervalued the miner and its future prospects.

The context: Under UK takeover rules, BHP has until May 22 to come back with a formal offer for Anglo American. Some Anglo American investors told Reuters the target company is worth around £30 a share.

Much of the focus of BHP's bid has been on copper, with the tie-up with Anglo likely to account for about 10% of global output of the metal, which is used in everything from electric vehicles and power grids to construction.