Anglo American digs in for bid clash with mine mogul Agarwal. Anglo American (AAL), the FTSE 100 giant behind De Beers diamonds, has called in a trio of investment banks to fortify its defences as it digs in against a takeover bid. The Sunday Telegraph can reveal the £30bn company’s advisers, Morgan Stanley, Goldman Sachs and Centerview, have been drawing up plans to fend off Volcan Investments, mining tycoon Anil Agarwal’s holding company, which also controls his metals empire Vedanta Resources (VED). “Anglo is at the ready,” said one City source. “Their defence advisers are armed with files.” Planned rearguard actions are understood to include attacks on the quality of Vedanta’s portfolio of mines compared with Anglo’s assets.
Suitors circle troubled Thomas Cook. Debt-laden tour operator Thomas Cook Group (TCG) has been approached by a string of suitors in recent weeks after a plunge in its stock market value made it a takeover target. Fosun, the Chinese conglomerate that owns Club Med, and private equity firms KKR and EQT are among those reportedly considering offers for either Thomas Cook’s main tour operator unit or the whole business. Sky News, which first reported the talks, said it was unclear how far away a formal offer could be, but that insiders said it was likely to be “months away”. The takeover interest comes after the company put its airline, which carries 20m customers a year, up for sale in February.
Shareholder advisory ISS sides with Barclays in boardroom battle. Barclays (BARC) has found an ally in its battle against an activist investor after a leading shareholder advisory group dismissed calls for a boardroom shake-up. ISS has warned shareholders of the 300-year-old lender to vote against a campaign by Sherborne Investors to install its founder, Ed Bramson, on the board at Barclays’ AGM next month. The proxy adviser said the “dissident” fund, and one of Barclays largest investors, had not presented “a sufficiently compelling case” that additional change is warranted “at this time”.
Knives out for Metro Bank founder Vernon Hill over loans gaffe. Metro Bank (MTRO) founder Vernon Hill faces a shareholder revolt next month after a major accounting blunder left investors nursing heavy losses. One of the lender’s top City backers told The Sunday Telegraph that Mr Hill or chief executive Craig Donaldson must go as a result of the debacle. It wiped £800m off the bank’s stock market valuation in one day after it was discovered Metro Bank had misclassified loans and did not have enough capital to comply with regulations. It was later forced to tap investors for more cash. “I can’t believe the board has not changed,” the shareholder said. “In any other situation, you would need board changes.
Pendragon break-up dismissed by top investor in car dealer. A top shareholder in Pendragon (PDG) has urged the car dealer to reject calls for it to break itself up in the wake of a shock profit warning. Hedge fund manager Crispin Odey, who holds almost 14pc of the company, said a strategic review of Pendragon launched by new chief executive Mark Herbert should not lead to it being dismantled. “There is strength in Pendragon operating in the new, used and after-sales markets at the same time,” Mr Odey said. “That size needs to be leveraged to win more of the market.”
BP seals new $6bn pact to drill for oil under the Caspian Sea. BP (BP.) has sealed a new pact with Azerbaijan to back a $6bn project alongside its state oil company that will aim to unlock more of the vast wealth beneath the Caspian Sea. The British oil major, which has been working in the central Asian state for quarter of a century, will invest in a expansion of drilling in the giant Azeri-Chirag-Deepwater Gunashli (ACG) oilfield complex. Once oil begins flowing in 2023 the new rig could produce as much as 100,000 barrels of oil a day, and up to 300 million barrels over its lifetime.
Questor – SSP Group (SSPG): this stock could return its entire market value to investors in little more than a decade. Questor share tip: the station and airport caterer may be losing its star boss in Kate Swann but shareholders should hold on
