Anglo steps up its defences
MINING titan Anglo American is gearing up to defend itself against rival Xstrata’s merger approach, by stepping up efforts to appoint a new chairman, and hatching plans for talks with China.
The company has drawn up a short list of preferred candidates for the job, understood to include industrial heavyweight Sir John Parker and former Pilkington boss Paulo Scaroni.
Industry sources said reports that Jim Leng, who quit as chairman-designate for Rio Tinto earlier this year, could take over at Anglo were unfounded.
“He’s a heavyweight and he’s available, so he’s being linked to everything,” one source said. “He’s just keeping his head down at the moment,” he added.
The company is also in open talks with an unnamed Chinese company, and an unidentified Middle Eastern investor, as it seeks out a partner for its Brazilian iron ore business, MMX.
“China has an insatiable appetite for iron ore,” a source familiar with the talks said, “making talks with those companies very appealing.”
Xstrata made an unsolicited, all-share merger proposal earlier this month.
Anglo’s board and chairman Cynthia Carroll slammed the approach, condemning its “lack of strategic merit,” and saying the terms were “totally unacceptable”.
But industry experts have backed the merger, welcoming the synergies, and saying it “makes sense.”
Combined, the companies would create a global mining group worth more than $40bn (£24bn), which would rival industry giants Rio Tinto and BHP Billiton.
Rio and BHP are planning a joint iron-ore venture.