(Reuters) -BHP Group is considering making an improved offer for Anglo American (JO:AGLJ) after its $39 billion initial proposal was rejected by the London-listed miner, a source familiar with the matter told Reuters.
BHP is in discussions on a revised bid for Anglo American to be made in coming weeks, the source said. The deliberations are ongoing and the group has not yet made a decision on the size and structure of the new proposal, the source added.
BHP said it does not comment on what it called "rumour and speculation", while Anglo American did not immediately respond to a Reuters request for comment.
Anglo American rejected BHP's $39 billion takeover offer on Friday, saying it significantly undervalued the miner and its future prospects.
Under UK takeover rules, BHP has until May 22 to come back with a formal offer for Anglo American. It is expected to sweeten its 25.08 pounds per share offer to try to clinch a deal that would create the world's biggest miner of copper, a metal central to the clean energy shift.
Some Anglo American investors, who asked not to be named because of the sensitivity of the matter, told Reuters the company is worth around 30 pounds a share.
Anglo shares closed at 26.43 pounds on Friday.
Much of the focus of BHP's bid has been on copper. A tie-up with Anglo would forge a group accounting for about 10% of global output of the metal, which due to its conductivity and resistance to corrosion is used in everything from electric vehicles and power grids to construction.
A deal, if successful, would be the largest mining takeover globally in 2024 so far and would rank among the top 10 largest deals ever for the sector, LSEG data showed.