Elliott Buys $1 Billion Stake in Anglo American Amid Takeover Buzz

Elliott Investment Management, an activist hedge fund led by Paul Singer, has acquired a stake of approximately $1 billion in the UK-listed mining company Anglo American Plc. The investment positions Elliott among the top ten shareholders of Anglo American. This development adds a layer of complexity to the ongoing narrative, as Anglo American has recently declined a takeover bid from Australia's BHP Group Ltd. BHP's offer, which would value Anglo American at £31.1 billion ($38.9 billion), aims to create the world's leading copper producer.

Anglo American has argued that BHP's proposal significantly undervalues the company and its prospects. The rejection of the bid and news of Elliott's stake has influenced Anglo American's share price, which saw an increase of 4.4% in London trading, reflecting a market value of about £32.6 billion.

Elliott Management is known for its active involvement in the companies it invests in. It has a history with BHP, having previously influenced the company to consider spinning off its oil assets and advocated for BHP to relocate its primary listing from Australia to London. The strategic positioning of Elliott Management in Anglo American suggests that they may play a role in the future financial and operational decisions of the mining giant, particularly as the industry focuses on resources like copper that are essential for the transition to clean energy and the manufacture of electric vehicles and wind turbines.