Investors expect BHP to lift Anglo American offer again

By Melanie Burton

MELBOURNE (Reuters) - BHP Group is likely to sweeten its $43 billion takeover offer for Anglo American for a second time and possibly add cash, investors in both companies said on Tuesday, after the London-headquartered target rejected a higher bid.

Anglo said the improved all-share offer, up 10% from BHP's initial proposal, continued to significantly undervalue the company.

Shares in BHP were trading 0.5% lower at A$43.03 on Tuesday.

BHP has until May 22 to return with a binding offer or walk away under UK takeover rules. The revised bid again required Anglo to sell its shares in iron ore and platinum assets in South Africa, a structure Anglo says is unattractive.

Investors expect BHP to lift Anglo American offer again

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