Elliott Investment Management has built a roughly $US1 billion stake in Anglo American, the UK-listed miner that’s received an unsolicited
Anglo American shares jumped as much as 6.3 per cent in London after Bloomberg News reported the stake. The Australian miner has proposed an acquisition that values its smaller rival at $US38.9 billion and would create the world’s top copper producer. Bloomberg News reported BHP’s approach on Wednesday. Anglo American said the proposal significantly undervalues the company.
“We like to see value-driven investors in the register,” said Giuseppe Bivona, chief investment officer at another activist, Bluebell Capital Partners, which built a stake in Anglo American in February. The company “is surely worth much more than BHP is offering.”Anglo American has long been viewed as a potential target among the largest miners, particularly because it owns attractive South American copper operations at a time when most of the industry is eager to add reserves and production.