Restructuring: Anglo American is fighting off a takeover by its Australian rival BHP
A major shareholder in Anglo American has backed the miner’s plan to break itself up as the deadline for a fresh BHP bid looms.
Last week, Anglo unveiled a restructuring as it fights off a takeover by its Australian rival.
Legal and General Investment Management (LGIM), which has just under 2 per cent of shares, yesterday said it approved of the proposals, which include a plan to sell the firm’s diamond unit De Beers.
Anglo said it would also sell its steel making coal and nickel businesses and spin off its South African platinum unit.
The future of its Woodsmith mine in North Yorkshire is also at risk.
BHP has until 5pm tomorrow to make another takeover bid after two earlier offers – worth £31billion and £34billion -– were rejected.
‘The plan is a radical but attractive strategy to create value for long-term investors,’ said Nick Stansbury, from LGIM.
‘We agree the execution will be challenging for management to deliver, but we are confident in their ability to do so.’
LGIM also holds almost 1 per cent of BHP shares. Stansbury said the take-over offers were ‘far from reflecting fair value for the business’.
