Anglo American not interested in BHP offer

London-based mining company Anglo American rebuffed a £31 billion (€36.24 billion) approach from Australia’s BHP.

The all-share offer from the company – full name Broken Hill Propriety Company – would have been one of the industry’s biggest transactions in recent years but Anglo American investors have said the bid was too low and “highly opportunistic.”

The company announced that the board had unanimously agreed to turn down BHP’s proposal which “significantly undervalued” the company and its future prospects.

The deal, which would involve two separate Anglo American demergers, was unattractive, chairman Stuart Chambers said, and shareholders would have to shoulder the potential risks.

BHP’s own shareholders have called on the company to increase the Anglo American bid and sources said the Australian giant was revising its offer following its earlier unsuccessful approach.

Meanwhile, insiders close to Anglo American revealed that any bid would need to be close to £40 billion (€46.77 billion).

Anglo American, with an estimated £34 billion (€39.75 billion) market value, currently trails its rivals after shares plunged when it cut copper production forecasts owing to difficulties at its mines in Peru and Chile.

Despite the current negotiations, shares were practically unchanged and still trading at £25.60 (€29.93).