, Columnist
BHP’s Fussy Anglo American Pitch Calls for Extra Premium
The Australian miner must fix an inadequate price and flawed structure. It could budge on both – or just try a knockout price.
The Collahuasi mine on the northern coast of Chile.
Photographer: Matthew CrazeThis article is for subscribers only.
You can overcome most objections to a deal just by offering to pay more. BHP Group Ltd.’s attempted takeover of rival miner Anglo American Plc could push the idea to the limit.
To recap, BHP has proposed a cheap and unusual two-stage deal that creates a lot of uncertainty for Anglo shareholders. This was easy for its target to reject. BHP must now address the two key snags: value and structure.