💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

UPDATE 1-Anglo American pares losses on Chinalco bid talk

Published 06/23/2009, 04:50 AM
Updated 06/23/2009, 04:56 AM
XTA
-
AAL
-
TGT
-

* Market talk of 2,200 pence per share bid from Chinalco

* Bid would value Anglo at about $45.6 bln

* Chinalco spokesman said firm unaware of bid talk

(Adds comment, updates shares)

LONDON, June 23 (Reuters) - Shares in miner Anglo American, a bid target, pared opening losses on Tuesday as dealers cited market talk of interest from Aluminum Corp of China (Chinalco).

Traders said the market talk was for a 2,200 pence per share bid for Anglo American from Chinalco, which would value the group at about 27.7 billion pounds ($45.6 billion).

A Chinalco spokesman in Shanghai said the company was unaware of the bid talk, while Chinalco representatives in London and officials from Anglo American declined to comment.

Anglo American shares were down 2.1 percent at 1,662 pence by 0838 GMT, having fallen as low as 1,610 pence earlier.

Anglo rejected a merger proposal from rival Xstrata late on Monday.

The approach has brought both companies into play, with Brazilian miner Vale and China seen as potentially interested parties.

"We see some merit in recent press speculation that the Chinese may turn their attention to Anglo American," said Nomura in a note. "We expect both Anglo and Xstrata to remain at the epicentre of the next wave of sector consolidation."

Nomura said it saw more merit in a Vale/Xstrata combination as opposed to Vale/Anglo. (Reporting by Dominic Lau, Joanne Frearson, Simon Falush and Julie Crust; Editing by Dan Lalor) ($1 = 0.6070 pound)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.