Mining company faces takeover, Elliott increases stake in Anglo American | Wilnesh News

Elliott Management already holds an approximately $1 billion stake in the miner Anglo American In recent months, a person familiar with the matter told CNBC.

Anglo American shares rose 5% after the news broke on Friday.

News of the activist’s stance comes as the $43 billion London-based miner faces takeover interest from mining giant BHP with global operations. On Friday morning, Anglo American rejected BHP Billiton’s $39 billion takeover bid, saying BHP’s takeover bid “significantly underestimated Anglo American and its future prospects.”

Anglo American declined to comment. The company is one of the world’s largest copper producers.

BHP’s bid would require a spin-off of Anglo American’s South African unit. The metal plays a key role in the global transition to clean energy and is used to make electric vehicles and wind turbines.

Anglo American chairman Stuart Chambers noted in the company’s rejection letter that copper accounts for “30% of Anglo American’s total production and benefits from the orderly and stable production of copper and other structurally attractive products.” A value-added growth option, Copper has more value to create for shareholders in the coming months and years.

Elliott’s stance was first reported by Bloomberg.

Elliott has extensive experience with mining companies, including with acquirer BHP in 2017. Listed.

BHP initially rejected the proposals and exited the oil business in 2021.

—CNBC’s Karen Gilchrist contributed reporting.