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Anglo American has unanimously rejected BHP’s proposed $60 billion takeover. So will the Big Australian return with a bigger offer?

The resounding rejection came a day after BHP launched its bid, which would have required Anglo to spin-off its entire shareholdings in Anglo American Platinum and Kumba Iron Ore.

Anglo American chair Stuart Chalmers described the move as “opportunistic” and “unattractive”.

“The BHP proposal is opportunistic and fails to value Anglo American’s prospects, while significantly diluting the relative value upside participation of Anglo American’s shareholders relative to BHP’s shareholders,” Chalmers said.

“The proposed structure is also highly unattractive, creating substantial uncertainty and execution risk borne almost entirely by Anglo American, its shareholders and its other stakeholders.

“Anglo American has defined clear strategic priorities – of operational excellence, portfolio, and growth – to deliver full value potential and is entirely focused on that delivery.”

Chalmers emphasised copper’s role in achieving net-zero goals and Anglo’s intention to cash in on the green energy transition.

“Anglo American is well positioned to create significant value from its portfolio of high-quality assets that are well aligned with the energy transition and other major demand trends,” he said.

“With copper representing 30 per cent of Anglo American’s total production, and with the benefit of well-sequenced and value-accretive growth options in copper and other structurally attractive products, the board believes that Anglo American’s shareholders stand to benefit from what we expect to be significant value appreciation as the full impact of those trends materialises.”

The Australian Financial Review (AFR) reported another offer may be on the horizon, with Anglo investors confident BHP could be tempted to pay more.

Reuters reported BHP is allegedly in talks to increase its offer and is expected to put more on the table in the coming weeks.

Whether or not another deal will materialise remains to be seen. In the meantime, Anglo has advised its shareholders to take no action on the proposal, with BHP having until May 22 to revise its offer.