(Reuters) -Key shareholders including BlackRock (NYSE ) pressured Anglo American to extend talks with BHP Group (NYSE over their proposed £38.6 billion ($49.18 billion) mining merger, the Financial Times reported. Saturday.
BHP, the world's largest listed mining group, now has until May 29 to make a firm bid for Anglo American (JO:) or will be forced to withdraw for at least six months under the UK's takeover rules. United Kingdom after it was granted a one-week extension on Wednesday.
BlackRock was among a handful of investors who encouraged significant negotiations with BHP, the Financial Times said, citing people close to the situation.
Two other major shareholders, Ninety One and Sanlam Investments, also backed the decision to expand talks, despite concerns over a deal structure that requires Anglo to spin off its stakes in its South African platinum and iron ore units, the official added. newspaper.
Ninety One and Sanlam Investments did not respond to a Reuters request for comment.
US asset manager BlackRock owns a 9.6% stake in Anglo, according to LSEG data, and is also a shareholder in BHP.
BHP will stand firm on the structure and value of its latest takeover proposal, focusing instead on allaying its target's concerns about execution risks over the next week, Reuters reported on Thursday.
The Financial Times said that, according to people familiar with BHP's thinking, there was only scope for “smaller, more creative structures to better share risks.”
However, people close to Anglo quoted by the newspaper said the structure needs to be changed or BHP will have to pay more.
Anglo American declined to comment on the FT report, while BHP Group and BlackRock did not respond to requests for comment.
($1 = 0.7849 pounds)
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