(Reuters) – Anglo American rejected rival BHP Group’s 31.1 billion pound (36.25 billion euro) takeover proposal on Friday, saying the offer significantly undervalued the mining company listed in London and its future prospects.
“BHP’s proposal is opportunistic and fails to add value to Anglo American’s prospects, while significantly diluting the upside shareholding in the relative value of Anglo American shareholders relative to BHP shareholders,” said the Anglo chairman Stuart Chambers in a statement.
BHP Group, the world’s largest listed mining company, submitted a £31.1 billion takeover offer on Thursday, offering Anglo American shareholders £25.08 per share, a premium of 31%.
Anglo American shares were up 16.1% at 25.60 pounds on the London Stock Exchange on Thursday, while BHP shares ended 4.6% lower on Friday.
(Reporting by Scott Murdoch in Sydney and Melanie Burton in Melbourne, with contributions from Archisma Iyer in Bangalore, writing by Jamie Freed; Lina Golovnya, editing by Kate Entringer)
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