Activist Investor Elliott Acquires $1 Billion Stake in Anglo American

Elliott Investment Management Makes $1 Billion Bet on Anglo American, Bets Against BHP Group

In a bold move, Elliott Investment Management has taken a significant stake in Anglo American Plc, totaling around $1 billion, while simultaneously betting against the stock of BHP Group Ltd., the Australian miner that recently made an unsolicited takeover approach to Anglo American.

The activist hedge fund, led by Paul Singer, has acquired exposure to nearly 33.6 million Anglo American shares through derivatives, making it one of the company’s top 10 shareholders. The news of Elliott’s stake caused Anglo American shares to surge by as much as 6.3% in London.

Interestingly, Elliott also holds a 0.07% short position in BHP, indicating its lack of confidence in the Australian miner’s prospects. Both Elliott and Anglo American declined to comment on the matter.

The investment comes at a crucial time for Anglo American, as BHP has proposed a takeover deal that values the company at £31.1 billion ($38.9 billion). While BHP’s approach has sparked interest in the mining industry, Anglo American has expressed concerns that the proposal significantly undervalues the company.

Elliott’s move into Anglo American’s stock reflects its strategy of targeting undervalued companies and pushing for strategic changes, such as share buybacks or business sales. The mining industry is closely watching how this situation unfolds, as it could potentially reshape the landscape of the sector.

Overall, Elliott’s bold bet on Anglo American and its stance against BHP have added an intriguing twist to the ongoing saga in the mining industry, leaving investors and analysts eager to see how the situation develops.