BHP shareholders yesterday urged the mining giant to raise its bid for Anglo American in yet another takeover battle gripping the City.
The Australian company is working on a revised offer after its mining rival last week rejected a £31billion approach.
Analysts said the bid needs to be more than £40billion to tempt Anglo to accept the deal.
A bidding war could push the valuation higher – with Glencore and Rio Tinto touted as firms that might swoop in with a rival offer.
Anglo was this weekend forced to defend chairman Stuart Chambers, who has overseen the sale of several blue-chip firms to foreign buyers, including Cambridge-based chip designer Arm.
Takeover battle: Australian mining giant BHP is working on a revised offer after its mining rival last week rejected a £31bn approach
BHP investors told Reuters they see value in an Anglo deal due to its copper assets.
The combined firm would be the world’s biggest copper producer at a time when demand for the metal has soared.
Shareholders said they are open to an increased bid to win over the London-listed firm’s board.
‘We potentially would be supportive if BHP raised their offer,’ one shareholder said.
An offer of more than £30 per share – valuing Anglo at more than £40billion – could ‘sway the decision’, analysts said.
And Jamie Maddock, energy analyst at Quilter Cheviot, suggested a rival bid could come from Rio Tinto and Glencore.
‘These industry giants have the capital and strategic interest to engage in such a significant transaction,’ he said.
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