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Glencore (OTCPK:GLCNF) (OTCPK:GLNCY) is evaluating a potential offer for Anglo American (OTCQX:AAUKF) (OTCQX:NGLOY), a move that could spark a bidding war for the company, Reuters reported Thursday.
The discussions are internal and preliminary at this stage and may not result in an actual approach, according to the report.
BHP's (BHP) recent $39B all-stock proposal was rejected by Anglo (OTCQX:AAUKF) (OTCQX:NGLOY) last week, but reportedly is considering making an improved offer; it has until May 22 to make a formal bid.
A precondition of BHP's (BHP) proposal was that Anglo (OTCQX:AAUKF) (OTCQX:NGLOY) sell its stakes in Anglo American Platinum (OTCPK:ANGPY) and Kumba Iron Ore in South Africa.
"Unlike BHP, Glencore could benefit from keeping Kumba and marketing iron ore, and Glencore may face less political pushback in South Africa, especially if it were to propose a straightforward all-share deal that does not include Kumba and Amplats demergers," Jefferies analyst Christopher LaFemina said recently in assessing potential takeover scenarios for Anglo American (OTCQX:AAUKF) (OTCQX:NGLOY).