BHP Group Ltd will likely raise its A$8.34 billion ($5.82 billion) offer to buy Australia's OZ Minerals , analysts said after the global miner was rebuffed in its pursuit of the nickel-copper miner on Monday.
, analysts said after the global miner was rebuffed in its pursuit of the nickel-copper miner on Monday.
OZ rejected BHP's A$25 per share offer, terming it undervalued and "opportunistic" as it was tabled when copper prices and its stock price have fallen from recent peaks."While OZ's board rejected the offer based on price, this is a strategically sensible target as it would enable BHP to unlock more of the value from Olympic Dam and would also add to BHP's Western Australian nickel business," Jefferies analysts said in a note.
Brad Smoling, managing director at Smoling Stockbroking, said other players would eye OZ's assets in light of the green energy push, and suggested a new offer could be up to A$30 per share. "Other buyers may be interested in OZ Minerals with many miners optimistic on the outlook for copper. Potential acquirers such as Glencore