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Embattled Anglo American boss Cynthia Carroll won a rare vote of support today as one of her mining giant's biggest shareholders said that she was pursuing the right strategy.
Old Mutual, which has a 3% stake in the London-listed giant, said Carroll was right to reject the merger offer of rival Xstrata, which was structured as a “merger of equals” — thus paying no premium to Anglo American shareholders.
Old Mutual fund manager Anwaar Wagner said: “I think it's really up to Xstrata whether they want to come back with an improved proposal that's more acceptable to Anglo American shareholders.
“If the price adequately compensated for the significant dilution of Anglo American's unique exposure the structually attractive platinum, coking coal, iron ore and diamond markets, I'm sure the board would consider it.”
Many Anglo shareholders have attacked Carroll, who has overseen an underperforming share price and cut the dividend this year for the first time since the Second World War.
But Wagner said: “You have to give the management a chance to execute the improvements they have initiated.”
