We're currently experiencing extremely high call volumes. We're very sorry for any inconvenience this might cause.

If you need help with your account, please visit our Help Centre, or email us and we’ll get back to you as soon as we can. For more information and tips on managing your account online please visit www.hl.co.uk/coronavirus

We’re experiencing high call volumes, please check FAQs before calling.

Skip to main content
  • Register
  • Help
  • Contact us
  • Log out of your HL account

Odey hits out at Anglo American's rescue bid for Sirius Minerals

In an open letter to Chris Fraser, the chief executive of Sirius, and Anglo boss Mark Cutifani, Odey also said it would vote against any offer that is not designated 'final'.

Article originally published by The Financial Times. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Hedge fund Odey Asset Management has lashed out at Anglo American’s £524m rescue bid for Sirius Minerals, saying it does not represent fair value for the company’s shareholders.

In an open letter to Chris Fraser, the chief executive of Sirius, and Anglo boss Mark Cutifani, Odey also said it would vote against any offer that is not designated “final”.

“Odey believes Anglo American have chosen not to declare their offer as ‘final’ because there is a risk of both the deal failing at its current level, and of an interloper at a later stage,” said the letter, which was signed by Odey’s fund manager Henry Steel.

“Odey therefore commits to vote against any Anglo American offer that is not designated as ‘final’ at this level. If Anglo wish to retain the option to counter bid, Odey accepts that rationality, and hence also commits today to vote in favour of any bid at 7p or above,” the letter said.

Anglo has offered 5.5p a share for Sirius, which has been struggling to finance the development of a huge potash mine on the North York Moors. The emergence of Odey as shareholder threatens to derail the bid, although it is likely to be seen by Sirius and Anglo as an attempt to extract a higher price. Odey has a 1.29 per cent interest in Sirius, according to regulatory filing released on Wednesday.

Thousands of retail shareholders face huge losses if the deal goes ahead. However, Sirius sees the Anglo bid is the best way of realising some value for investors as well as safeguarding the development — the largest mining project in the UK for a generation.

It has also warned investors that if the takeover is not approved, the company — which is running out of cash — is likely placed into administration.

However, Mr Steel reckons there is “material upside” for an entity that can fund the development costs of the Woodsmith mine.

“It is Odey’s belief that Anglo-American’s current offer does not represent fair value for shareholders in Sirius,” Mr Steel said.

Sirius shareholders will vote on whether to accept the deal on March 3. Of those present at the meeting, 75 per cent will need to vote in favour for the bid in order for it to be completed.


This article was written by Neil Hume from The Financial Times and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Article originally published by The Financial Times. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Free news email alerts

  • Daily and weekly news
  • Major Publishers
Register