De Beers: No knowledge of Anglo buyout
The world's largest diamond business De
Beers said on Monday it has “no knowledge” of weekend reports out of London that its
45% shareholder Anglo American (AGL) was plotting a takeover.
James Wyatt-Tilby, spokesman for Anglo American, one of the world's largest mining
companies, told I-Net Bridge/BusinessLIVE from London that the company would “not
comment on this speculation”.
De Beers spokesman, Tom Tweedy, also called the report “speculation” as the
company had no knowledge of a takeover plan.
“It is a shareholder issue - only shareholders would comment,” he added.
The reports emanated from the Sunday Times in London, which said Anglo is
considering a plan to take control of De Beers.
The London-based company, which has significant mining operations in South Africa,
would do so by buying out the Oppenheimer family's stake, said the report, which cited
sources in the British capital's City financial district.
Anglo American owns 45% of De Beers, with the Oppenheimers holding 40% and the
government of Botswana 15%.
The deal could cost Anglo American at least two billion pounds (3.1 billion
dollars, 2.4 billion euros), the report said.
“Shareholders aren't happy with the minority investment. They want clarity either
way, and the view of the directors is a positive one: that they would be interested in
taking control,” the broadsheet cited a banking source as saying.
De Beers has expertise in exploration, mining and marketing of diamonds. De Beers
has mining operations in Canada, Botswana, Namibia and South Africa, as well as
marketing and corporate offices in the United Kingdom and retail stores worldwide.
De Beers de-listed in 2001 after shareholders agreed to a US$36 billion buyout of
the diamond-mining giant. This year, it denied reports it may consider a re-listing.
Anglo's share price was last up 1.68 rand to 335.01 rand in morning trade on
Monday, but within the context of general gains by the resources index as gold rose
over $2 an ounce. - I-Net Bridge