The boss of BHP will meet his counterpart at takeover target Anglo American next week after seeing his £31billion bid for the rival firm rejected.
Mike Henry, the mining giant’s chief executive, and his counterpart at Anglo, Duncan Wanblad, are due to speak at the Bank of American Global Metals, Mining and Steel Conference in Florida on Tuesday.
Sources told the Mail the pair will hold talks off stage at the industry jamboree in Miami.
The meeting will set tongues wagging after Anglo rejected a £31billion takeover offer from BHP, branding the bid ‘too low’ and ‘highly opportunistic’.
It is understood that BHP is preparing to table a higher offer – thought to be in the region of £40billion – as it looks to transform itself into a mining supermajor with Anglo’s coveted copper mines in Latin America as the main prize.
Digging deep: It is understood that BHP is preparing to table a higher offer – thought to be in the region of £40billion
The Bank of America Global Metals, Mining and Steel Conference is the pre-eminent event in the industry, where chief executives, bankers, traders and analysts flock to drum up business and discuss issues.
One source said: ‘All the major players, executives and shareholders will be at the event. Both men are scheduled to speak on the Tuesday. It will be a good gauge for both bosses to see how much appetite there is for a deal.’
BHP is under pressure to raise its bid amid interest in Anglo from Glencore and Rio Tinto.
A major hurdle to a deal has been South Africa as BHP wants to dump Anglo’s iron ore and platinum businesses and keep the copper mines.
This has upset the South African government which is BHP’s second biggest shareholder and is a sensitive matter for the ruling African National Congress in an election year. Two weeks ago Henry flew to South Africa where he held crisis talks as the miner seeks to drum up support for the takeover.
Last week it was reported that the trip had gone some way to resolving issues, with Anglo’s key South African shareholders now open to a takeover offer from BHP. But many investors have urged BHP to put the acquisition chequebook away over the past decade after a £16billion spend on shale gas assets in 2011 in the US failed.
Angus Aitken at Australian stockbroker Aitken Mount Capital Partners wrote in a letter to clients last week: ‘This deal really does have the potential to be a complete mess for BHP long term.
‘This is like BHP is trying to buy a six-bedroom house, just to get the garage.’
