Anglo American’s board has rejected BHP’s takeover offer, saying that the proposal “significantly undervalues” the copper, iron ore and platinum producer.
The London-listed company said that the valuation was not the only issue, calling the proposed structure that would require Anglo to demerge its South African iron ore and platinum divisions “highly unattractive”.
On Thursday, BHP went public with its proposal to buy one of its largest rivals.
“The BHP proposal is opportunistic and fails to value Anglo American’s prospects,” said Stuart Chambers, chair of Anglo American. “The proposed structure is also highly unattractive, creating substantial uncertainty and execution risk borne almost entirely by Anglo American, its shareholders and its other stakeholders.”