Restructuring: Anglo American fights takeover by Australian rival BHP
A major Anglo American shareholder has backed the miner’s plan to split as the deadline for a new bid from BHP approaches.
Last week, Anglo unveiled a restructuring as it fights a takeover by its Australian rival.
Legal and General Investment Management (LGIM), which holds just under 2 per cent of the shares, said yesterday it approved the proposals, which include a plan to sell the company’s diamond unit, De Beers.
Anglo said it would also sell its coal and nickel businesses for steel production and spin off its platinum unit in South Africa.
The future of its Woodsmith mine in North Yorkshire is also at risk.
BHP has until 5pm tomorrow to make another takeover bid after two previous bids (worth £31bn and £34bn) were rejected.
“The plan is a radical but attractive strategy to create value for long-term investors,” said LGIM’s Nick Stansbury.
“We agree that execution will be a challenge for the administration, but we are confident in its ability to do so.”
LGIM also owns almost 1 percent of BHP shares. Stansbury said the takeover offers were “far from reflecting fair value for the business”.
