Elliott Investment Management Acquires $1bn Stake in Anglo American Amid BHP Takeover Bid

Elliott Investment Management, the activist hedge fund led by Paul Singer, has acquired a stake of approximately $1 billion in Anglo American, the UK-based mining giant that is currently the target of an unsolicited takeover bid from Australia’s BHP Group. This development was revealed in a report by Bloomberg, citing a UK regulatory filing on Friday.

The filing disclosed that Elliott holds a 2.5% stake in Anglo American through derivatives exposure to 33.6 million of the company’s shares. Sources familiar with the matter indicated that Elliott gradually built this position over the past few months, making it one of the top 10 largest shareholders in the company. Additionally, the firm holds a 0.07% short position in BHP, according to another regulatory filing.

The announcement of Elliott’s stake triggered a notable surge in Anglo American’s share price, with the stock rising as much as 6% in London.

BHP’s unsolicited offer to acquire Anglo American values the company at £31.1 billion ($38.9 billion). If the deal were to proceed, it would position BHP as the world’s leading copper producer. However, Anglo American has rejected the offer, stating that it significantly undervalues the company.

Despite the offer, Anglo American’s shares closed 3.2% higher at 2,643.00 pence on Friday, giving the company a market valuation of approximately £32.4 billion. The stock had surged 16% on Thursday following news of BHP's bid, though it remains down over a third from its peak two years ago. The ongoing developments highlight the growing tension and uncertainty surrounding the potential merger.