Anglo American rises premarket on deal talk (AAUK)

Posted in General 
June 22nd, 2009

Anglo American PLC (Nasdaq: AAUK) shares are up more than 6% on strong premarket volume after the Wall Street Journal reported it’s been approached by Xstrata with a takeover offer. A deal could help the combined company overtake Rio Tinto PLC (NYSE: RTP) as the world’s third-most valuable miner, after BHP Billiton, Ltd (NYSE: BHP).

It’s possible that AAUK’s strong 7% gain could fade intraday, however. Rumors of an AAUK and Xstrata deal have circulated previously. Completion of a deal faces many challenges. Also, the premium offered isn’t very large.

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