Anglo braced for more bids from abroad

<div>ANGLO AMERICAN&rsquo;S share price recovered from initial losses yesterday on market speculation that China&rsquo;s Chinalco and Brazil&rsquo;s Vale could emerge as potential suitors and make a bid for the company.<br /><br />Investors had started to dump their Anglo shares, following its rebuttal of rival miner Xstrata&rsquo;s all-share, nil-premium bid for it earlier this week.<br /><br />&ldquo;We were surprised to read&nbsp;Anglo&rsquo;s somewhat aggressive response regarding the proposed combination&rsquo;s &lsquo;lack of strategic merit&rsquo;,&rdquo; Anindya Das at Nomura said yesterday.<br /><br />&ldquo;Our conversations with many Anglo shareholders over the past two months regarding the potential merits of such a combination certainly do not give us the impression that shareholders see little strategic merit,&rdquo; he added.<br /><br />He also said that many shareholders would prefer a more open dialogue between Anglo and Xstrata&rsquo;s management teams.</div>
<div><br />But Anglo&rsquo;s decision to rebuff Xstrata &ndash; lead by its chief executive Cynthia Carroll&nbsp;&nbsp;&ndash; could eventually lead to a better offer, other analysts said.<br /><br />Over a year after Vale stopped talks with Anglo on a merger which would have created the world&rsquo;s biggest mining group, Xstrata&rsquo;s proposed &ldquo;merger of equals&rdquo; may stir up interest&nbsp;in Carroll&rsquo;s company from other groups, analysts say.<br /><br />Both Chinalco &ndash; recently spurned by mining giant Rio Tinto in favour of a rights issue and a joint venture with BHP Billiton &ndash; and Vale&nbsp;dismissed the suggestions as &ldquo;market speculation&rdquo;.</div>