[miningmx.com] – ONE of Anglo American’s largest shareholders has urged the group to resist pressure to issues shares for cash, said Bloomberg News citing a letter addressed to Mark Cutifani, CEO of the UK-listed firm.
“Anglo American is not in acute financial difficulty. Issuing new equity because this is what is demanded by sell side analysts or media commentary, however intense, is unlikely to be in the best interests of long-term shareholders,” Schroders wrote in the letter dated December 15. Schroders owns 3.6% of Anglo.
Anglo, which in December scrapped its dividend and said it would cut assets 60%, was the worst stock in the FTSE 100 Index last year, plunging 75% as commodity prices collapsed from waning Chinese demand for copper to iron ore.
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