Rumours of takeover bid lifts Anglo American, other mining stocks
19 Jun 2008
Mumbai: Anglo American Plc rose 42.49 rand, or 8.4 per cent, to a record high 547.50 rand on the Johannasburg exchange amidst rumours of a possible acquisition bid by Brazilian mining giant Cia Vale do Rio Doce (Vale).
While Anglo American rose to 574.50 rand, its larger rival BHP Billiton Ltd rallied 13.75 rand, or 4.7 per cent, to 305.25, the biggest increase since April.
The mining sector stocks also got a boost following remarks by Anglo American chief executive Cynthia Carroll that sovereign wealth funds from countries like China are shaping up as powerful rivals in the mining sector.
"The sovereign wealth funds of countries like China, like India, like Russia, the Gulf states, Brazil and Singapore are changing the rules of the game," Carroll said in a speech at London's Royal Institute of International Affairs.
"And today the traditional players in natural resources not only have to weigh up each other, but have to be constantly looking over their shoulders at these powerful new or potential entrants into the business," she said.
The China Development Bank had, in February signed a strategic deal with Anglo American to develop mining projects in South Africa.
