BHP tells investors Anglo bid is 'on strategy', stresses discipline

In a parallel process, BHP adviser UBS has begun booking meetings with fund managers for this week, three sources with direct knowledge of the matter said. The talks indicate the effort that BHP is making to fine tune a revised proposal for Anglo.

BHP has told Australian investors privately that its $39 billion Anglo American bid is in line with its strategy and that it will be disciplined in its approach, two fund sources said. The world's biggest listed mining group is weighing up its next move after its initial takeover proposal for its smaller competitor was rejected by Anglo last week.

"They could not say much, but kept reiterating that they have to be disciplined," said a portfolio manager at one fund who spoke to BHP's investor relations team on Monday. Both BHP investors said they saw value in a deal given Anglo's quality copper assets and long term copper prices, and would be open to BHP raising its offer. They declined to be named as the talks were private.

"We are receptive to the deal. We potentially would be supportive if BHP raised their offer," said the first investor. In a parallel process, BHP adviser UBS has begun booking meetings with fund managers for this week, three sources with direct knowledge of the matter said.

The talks indicate the effort that BHP is making to fine tune a revised proposal for Anglo. Reuters reported over the weekend, citing a source, that BHP is considering a renewed bid for London-listed Anglo.

The investor meetings being sought by UBS will focus on gaining granular details on how BHP shareholders think a second bid should be structured, the first source said. That feedback would then be given back to BHP, the source added. The sources declined to be named as the information being discussed was not public.

BHP and Anglo declined to comment. UBS did not immediately respond to a request for comment. Anglo shares in London were up 1.87% to 26.92 pounds. BHP shares closed 0.42% lower at A$42.97 in Australia.

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