by Scott Murdoch and Melanie Burton
SYDNEY (Reuters) – BHP has told some of its shareholders that its proposed acquisition of Anglo American is in line with its strategy and that its approach will be rigorous, two investors familiar with the matter said.
“They didn’t say much but reiterated that they had to be rigorous”, after the rejection of the initial buyout offer last week, summarizes a fund manager who spoke with the investor relations team of BHP.
“We are open to a buyout. We could support a new upwardly revised offer,” adds the manager.
A second BHP shareholder also said he was open to a new offer for Anglo American, justified by the long-term outlook for copper prices and the quality assets held by the British group.
Separately, UBS began setting up meetings with fund managers this week, according to three sources familiar with the matter.
One of them added that discussions would focus on the structure of a new takeover offer from Anglo American.
The results of these discussions will be transmitted to BHP, one of the sources added.
BHP and Anglo American declined to comment, while UBS was unavailable to respond to a request for comment.
At 10:34 GMT, Anglo American was up 2.06% at 26.98 pounds, while BHP closed down 0.42%.
(Reporting Scott Murdoch and Lewis Jackson in Sydney, Melanie Burton in Melbourne; French version Corentin Chappron, edited by Sophie Louet)
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