Bid 'significantly undervalues' Anglo American (Il Sole 24 Ore Radiocor) - London, 26 Apr - The UK-based mining company Anglo American said that its board has rejected a takeover offer by its Australian peer BHP on the basis that it "significantly undervalues" the company.

"The proposal comprised an all-share offer for Anglo American by BHP, with a requirement for Anglo American to complete two separate demergers of its entire shareholdings in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American shareholders. The all-share offer and required demergers would be inter-conditional," it noted.

"The board has considered the proposal with its advisers and concluded that the proposal significantly undervalues Anglo American and its future prospects," it said.

"In addition, the proposal contemplates a structure which the board believes is highly unattractive for Anglo American's shareholders, given the uncertainty and complexity inherent in the proposal, and significant execution risks," it added.

"The board has therefore unanimously rejected the proposal," it said.

Under UK rules, BHP must by 5.00 pm, London time, on May 22 to announce whether it will or nor make a firm intention to make an offer for Anglo American.

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(RADIOCOR) 26-04-24 08:46:02 (0175) 5 NNNN