Anglo American plc (LSE:AAL) rejected a raised takeover offer of £34 billion ($42.67 billion) from BHP Group Limited (ASX:BHP), saying the world's largest listed miner "continues to significantly undervalue" the company. The London-listed miner had earlier rebuffed BHP's initial $39 billion all-share proposal made on April 25, dismissing it as opportunistic and saying it would dilute the upside value for its shareholders relative to BHP's. "The latest proposal from BHP again fails to recognise the value inherent in Anglo American," Chairman Stuart Chambers said. The new offer, made on May 7, was 10% higher than the first, or a 15% increase in the merger exchange ratio to lift Anglo American shareholders' aggregate ownership in the combined group to 16.6% from 14.8%.

"We are disappointed that this second proposal has been rejected," BHP CEO Mike Henry said in a statement. "BHP continues to believe that a combination of the two businesses would deliver significant value for all shareholders." The revised bid again required Anglo to sell its shares in iron ore and platinum assets in South Africa, a structure Anglo says is unattractive. "The BHP proposal .

leaves Anglo American, its shareholders and stakeholders, disproportionately at risk from the substantial uncertainty and execution risk created by the proposed inter-conditional execution of two demergers and a takeover," Chambers said.