(Reuters) – Key shareholders including BlackRock (NYSE:) have pressured Anglo American to extend talks with BHP Group (NYSE:) over a proposed £38.6 billion ($49.18 billion) mining merger ), the Financial Times reported on Saturday.
BHP, the world’s largest listed mining group, now has until May 29 to make a firm bid for Anglo American (JO:) or be forced to exit for at least six months under British takeover rules after she will be granted a one-week extension on Wednesday.
BlackRock was among the few investors to encourage constructive talks with BHP, the FT reported, citing people close to the situation.
Two other major shareholders, Ninety One and Sanlam Investments, also supported the decision to extend negotiations, despite concerns about the structure of the deal, which requires Anglo to spin off its stakes in South African platinum and iron ore mining operations, the newspaper added.
Ninety One and Sanlam Investments did not respond to Reuters requests for comment.
US asset manager BlackRock owns a 9.6% stake in Anglo and is also a shareholder in BHP, according to LSEG.
BHP will stick firmly to the structure and value proposition of its latest takeover bid, focusing instead on allaying its target’s concerns about execution risks in the coming week, Reuters reported on Thursday.
The FT said that according to people familiar with BHP’s thinking, there is only room for “smaller, creative structures that can better share the risks”.
However, people close to Anglo quoted by the newspaper said the structure needed to change or BHP would have to pay more.
Anglo American declined to comment on the FT report, while BHP Group and BlackRock did not respond to requests for comment.
($1 = 0.7849 pounds)