Former BHP Group Limited (ASX:BHP) chairman Don Argus says Anglo American plc (LSE:AAL) "does not warrant" a higher bid, and the Anglo board should come to their senses and begin talks with his successor at the Australian mining giant. With the May 22 deadline for BHP to make a final offer for Anglo American approaching, BHP is weighing up whether it should lift its offer one more time to try to -encourage the Anglo board into engaging over the takeover play, or walk away. London-based Anglo American has already rejected two non-binding proposals from BHP and rushed out a dramatic restructuring plan of its own.

Mr. Argus, who was chairman of BHP from 1999 to 2010, said BHP's move on Anglo made sense for shareholders of both companies - including him. "I hope the Anglo board comes to their senses and starts to think hard about the deal," Mr. Argus said. "As a shareholder of Anglo I think they haven't performed and in my view they don't warrant a higher bid from BHP." The 85-year-old mining veteran said he had stakes in both companies and did not want to see the $64 billion offer fail.

"BHP have got their strategy and they know what they're doing. Why abandon something that starts out as part of your strategic direction?" he said. "There's a very strong discipline in BHP that if you don't make your way to that average weighted capital then you don't have growth prospects." BHP shares closed up 1.9% at $45.72 on 20 May 2024.

The stock is up 1.1% since the company launched its takeover tilt for Anglo on April 25. BHP chief executive Mike Henry said last week the decision of the Anglo board to knock back BHP's offers without engaging in direct talks with its suitor meant the matter was in the hands of Anglo shareholders. The company has also made it clear it is prepared to walk away unless it can hold at least basic talks with the Anglo board about the offer.

But as BHP considers its -options ahead of Wednesday's "put up or shut up" deadline, -analysts say a final rise is still -possible.