Investing.com — Shares in BHP Group (ASX:) hit a three-month high in Australian trading on Tuesday, as the deadline approached for the world’s largest miner to make a new formal bid for rival Anglo American (JO:).
Analysts quoted by Reuters said BHP shares rose partly on increasing predictions that the company will not make a new bid for Anglo. Rising prices and new stimulus for China’s ailing real estate sector were also seen as catalysts for the shares.
BHP has until 4pm GMT on Wednesday to submit a new proposal for Anglo American. If the two companies reach an agreement, an extension could be arranged. If not, BHP will have to wait at least six months before making a new offer.
Anglo’s board has already rejected two bids for BHP shares, including an improved $43 billion bid submitted last week, saying they were inadequate and difficult to implement.
