Closing summary
Our main stories today:
Anglo American has rebuffed a third takeover attempt by Australia’s BHP after it sweetened its offer in an attempt to create a global mining titan.
BHP said it had submitted an “increased and final” £31.11 a share bid for Anglo, which values the company at £38.6bn, earlier this week.
The FTSE 100 miner had already rejected two previous offers from BHP: the first, in April, valued it at £31bn and the second, which was snubbed earlier this month, put it at £34bn.
The attempted BHP takeover, the largest ever in the mining sector, would create a global player in markets for commodities including copper, iron ore, potash and metallurgical coal used for steelmaking.
UK inflation fell to 2.3% in April – its lowest level for almost three years – but the decline was smaller than expected, denting hopes of an early interest rate cut.
City analysts had forecast the annual increase in the cost of goods and services would fall to 2.1%, close to the Bank of England’s 2% target.
Markets responded by trimming their predictions that the Bank would cut rates from their current 5.25% level as early as next month, with forecasts of a reduction in August also scaled back.
Other big stories:
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BHP’s attempt to snap up Anglo could still be gatecrashed by a rival bidder. Swiss mining company Glencore, which has reportedly been considering its own approach.
BHP’s terms require that Anglo sells its stakes in Anglo American Platinum and Kumba Iron Ore, returning cash to shareholders, as part of the deal.
Even if BHP is unsuccessful, Anglo’s chief executive Duncan Wanblad has pledged to break up the business and sell its platinum division and its De Beers diamond arm.
Stuart Chambers, chairman of Anglo American, said:
The board considered BHP’s latest proposal carefully, concluded it does not meet expectations of value delivered to Anglo American’s shareholders, and has unanimously rejected it.
Chambers said its board was “confident in Anglo American’s standalone future prospects and that BHP had not addressed the board’s concerns about the “complex” terms of the takeover.
