Ex-Xstrata boss reportedly eyeing up Anglo American assets

3rd Nov 2014 14:32

Anglo American's share price was making gains on Monday after weekend speculation that the former boss of Xstrata could bid for some the miner's assets.Anglo was trading 1.2% higher in afternoon trade after The Sunday Times reported that Mick Davis' X2 Resources had made an offer for Anglo's Chilean copper mines, Brazilian nickel mines and some coal projects.Davis, who served as Xstrata chief executive until the group merged with Glencore last year, is said to have built up a war chest of nearly $5bn to fund acquisitions to create a mid-tier diversified metals company.However, Cityam has cited a source close to X2 Resources as saying that reports of a potential bid for Anglo's assets are premature.Analysts at Investec said that X2 "has for some time been trying to secure assets"."We understand Anglo's Norte copper assets are for sale. Nickel has been a turnaround story for the company although it is reinvesting capital to reline the furnaces. Coal prices remain weak for both spot and thermal, and no doubt some assets are struggling at current prices," they said.However, they said they "remain cautious that a deal could eventuate at an acceptable price for both parties".