While maintaining its 'neutral' opinion on Anglo American, Oddo BHF has raised its target price from £27 to £29, a level which 'remains slightly below BHP's last offer to take account of the residual risks of failure'.

However, the research firm considers that BHP's third offer, submitted to Anglo American's Board of Directors on Monday, is 'now sufficiently attractive', valuing it at $31.11 per share based on the latest share prices of BHP, Anglo Platinum and Kumba Iron Ore.

Oddo BHF believes that the next few days should be devoted to ironing out the remaining difficulties associated with the deal, and, judging that an acquisition is now the most likely scenario, is 'more inclined to value Anglo on this basis'.

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