AndreyPopov
U.S. private equity firm BlackRock (NYSE:BLK) and several other investors encouraged Anglo American (OTCQX:AAUKF) to continue its discussions with Australian mining group BHP (NYSE:BHP) over its proposed £38.6B ($49.2B) megamerger deal, The Financial Times reported Saturday.
The report comes after U.K.-based Anglo American (OTCQX:NGLOY) cited deal structure to reject BHP’s third takeover offer, which valued the company at £29.34 per share.
However, the company agreed to a one-week extension to complete discussions, giving BHP (BHP), the world’s biggest listed mining group, until May 29 to make a formal bid or walk away.
BlackRock (BLK), which has a 9.6% stake in Anglo (OTCQX:AAUKF), has encouraged meaningful negotiations with BHP (BHP), according to The Financial Times.
Other significant shareholders, Ninety One and Sanlam Investments are also said to have backed the decision despite concerns over the deal structure, which requires Anglo to offload its stakes in its South African platinum and iron ore units.
“We’ve been advocates of what’s in the best interests of Anglo shareholders and wanted them to at least have a discussion with BHP,” FT quoted an investor as saying.
