BlackRock pressed Anglo American to extend BHP talks: FT
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The news: Key Anglo American shareholders including BlackRock pressured the miner to extend talks with BHP over its proposed takeover, which were originally set to expire on Wednesday last week.
The numbers: Anglo American rejected a third bid by BHP last Wednesday, which was set at approximately £29.34 ($56.19) per Anglo American share, valuing Anglo at about £38.6 billion ($73.92 billion).
The FT reports that while BlackRock owns a 9.6% stake in Anglo with the majority held through passive funds tracking an index, the asset manager is influential in the sector as its CIO for natural resources, Evy Hambro is an industry veteran. BlackRock also holds a 6.9% stake in BHP.
The context: While BHP said that the new increase to the share ratio offered was final and will not be increased, Anglo requested an extension to the ‘put-up-or-shut-up’ (PUSU) takeover deadline for when BHP has to make an offer or walk away, by one week, until 5pm on 29 May.
According to sources cited by the Financial Times, two other large Anglo shareholders, Ninety One and Sanlam Investments, also backed the decision to extend, despite concerns about a deal structure that requires Anglo to spin off its stakes in its South African platinum and iron ore units.
“We’ve been advocates of what’s in the best interests of Anglo shareholders and wanted them to at least have a discussion with BHP,” said one shareholder.
The sources: Financial Times, Reuters, Capital Brief
