(Reuters) – Anglo American has come under pressure from major shareholders including BlackRock (NYSE:) to extend talks with BHP Group (NYSE:) over a proposed £38.6 billion (49.18 billion) mining merger, the Financial Times reported on Saturday. Billion dollar).
BHP, the world's largest listed mining group, has until May 29 to make a firm bid for Anglo American (JO): otherwise it will have to withdraw for at least six months under UK takeover rules after it was awarded a bid. One. -Extending the week on Wednesday.
The Financial Times, citing people familiar with the situation, said that BlackRock was among a handful of investors who encouraged meaningful negotiations with BHP.
The newspaper added that two other large shareholders, Ninety One and Sanlam Investments, also supported the decision to extend the talks, despite concerns about the structure of the deal that requires Anglo to separate its stakes in platinum and iron ore units in South Africa.
Ninety One and Sanlam Investments did not respond to Reuters' request for comment.
US-based asset manager BlackRock has 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 bid, 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 room for “smaller, creative structures to better share risk.”
However, people close to Anglo, quoted in the newspaper, said the structure needed to change or BHP would have to pay more.
Anglo American declined to comment on the Financial Times report, while BHP and BlackRock did not respond to requests for comment.
($1 = 0.7849 pounds)