Elliott Investment Management has built a roughly $1 billion stake in Anglo American Plc, the U.K.-listed mining company that received an unsolicited takeover bid from Australia’s BHP Group Ltd. had received.
The activist hedge fund run by Paul Singer is invested in nearly 33.6 million Anglo-American stocks via derivatives, in line with a British regulator filing on Friday that confirmed a report from Bloomberg News. The company gathered the two.5 percent stake in recent months, in line with people acquainted with the matter, who asked to not be identified discussing confidential information.
The investment makes Elliott considered one of Anglo American’s top 10 shareholders, data compiled by Bloomberg show. Anglo American shares rose as much as 6.3% in London after Bloomberg News reported the holding.
Elliott also has a 0.07% short position in BHP, in line with a separate filing. Representatives for Elliott and Anglo American declined to comment.
Elliott’s presence in Anglo American shares comes because the mining company is the topic of takeover interest from BHP. The Australian miner has suggested A takeover that will value the smaller rival at 31.1 billion kilos ($38.9 billion) and create the world’s largest copper producer. Bloomberg News reported BHP’s approach on Wednesday. Anglo American said the proposal significantly undervalued the corporate.
Singer’s firm is understood for intervening in beaten-down stocks after which pushing firms to take actions starting from stock buybacks to outright sales of the corporate.
“We like to see value investors on the register,” said Giuseppe Bivona, chief investment officer at one other activist, Bluebell Capital Partners, which built a stake in Anglo American in February. The company “is certainly worth a lot more than BHP is offering.”
Anglo American has long been seen as a possible goal amongst the biggest mining firms, particularly since it has attractive South American copper operations at a time when many of the industry is trying to increase reserves and production.
But the complicated structure and the combo of other raw materials in addition to the strong dependence on South Africa deter interested parties. In February Anglo American reported The company posted a pointy drop in profits and cut its dividend attributable to falling demand for diamonds and platinum group metals – commodities unique to its portfolio.
BHP has proposed an all-share deal through which Anglo would first carve out controlling stakes in South African platinum and iron ore firms to its shareholders.
Shares in Anglo American closed 3.2% higher at 2,643.00 pence in London on Friday, giving it a market value of around 32.4 billion kilos. The stock rose 16% on Thursday following BHP’s motion. Even after this week’s rally, the stock remains to be greater than a 3rd below its peak two years ago.
Elliott took a big position in BHP in 1991 2017 and pushed it shut spin off certain oil facilities. In 2021 the miner went on strike Offers which prolonged its phase-out of fossil fuels, including a sale of oil and gas operations Woodside Petroleum Ltd.
Singer’s company has also worked with other metal firms. In 2022, Elliott held discussions with Kinross Gold Corp. that resulted within the miner announcing a $300 million share buyback. And it is almost all shareholder in Triple Flag Precious Metals Corp., which provides financing for mining firms. The company can also be forming a brand new company, Hyperion, to take a position in mining assets.
