BHP ASX: BHP’s Anglo bid will turn into a ‘complete mess’: Angus Aitken

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The prominent stockbroker has told his clients the strategy to buy the whole company to just get its copper and coal mines “seems crazy to us”.

says the next chief executive of BHP could be left with “a complete mess” if the company acquires Anglo American in the belief it can subsequently sell the non-core assets at good prices., which proposed to issue about $40 billion worth of new shares to Anglo investors in exchange for control of the struggling diversified miner.reported earlier this week that Argo Investments and Wilson Asset Management, two BHP investors, said they were satisfied value could be created through the takeover.

“In our view, this deal really does have the potential to be a complete mess for BHP long term,” Mr Aitken wrote in a note to clients of Aitken Mount Capital Partners. “This is like BHP is trying to buy a six-bedroom house, just to get the garage. There are multiple large risks in BHP long term in trying to sell off the assets they don’t want.

“The chairman and CEO are both scheduled to leave the company within two years leaving yet another BHP deal that leaves shareholders carrying the can while management have left with no consequences,” said Mr Aitken.

 

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