Gilbertson said to have Anglo in sights

ENIGMATIC mining executive Brian Gilbertson is reported to be plotting a reverse takeover of Anglo American, SA’s largest mining company. In London, The Times reported at the weekend that Gilbertson had told his board colleagues at Russian resources company Sual, where he is president, that a reverse takeover of Anglo American could be launched as early as next year.

Gilbertson, who orchestrated the merger of Australian giant BHP and South African company Billiton in 2001, is merging Sual with Russia’s largest aluminium company, Rusal, and the aluminium oxide assets of Swiss commodities trader Glencore.

Gilbertson will be the nonexecutive chairman of the merged entity, United Company Rusal, and already appears to be gunning for bigger things.

A combined Rusal-Anglo would be among the 10 largest companies on the London Stock Exchange with a market capitalisation of more than R700bn. United Company Rusal has said it plans to list in London and a reverse takeover of Anglo American would allow it to meet this goal.

Yesterday, Gilbertson said the author of the report “would be a great writer of fiction”.

Anglo would not comment.

Anglo’s market value has more than doubled in the past year from R250bn, as CEO Tony Trahar has set about a restructuring that will see the company sell various assets, including Highveld Steel & Vanadium to Russian group Evraz, the listing of paper maker Mondi, the unbundling of Tongaat-Hulett and the reduction of its share of AngloGold Ashanti.

Speculation abounded earlier this year that several mining companies were considering a takeover or merger with Anglo American. Rio Tinto, Xstrata and Brazil’s Compania Vale do Rio Doce were considered to be the most likely suitors.

It remains to be seen whether the enlarged Rusal will have the capacity to pull off such a big deal. The Times said that Rusal, a private company, had borrowing capacity of R115bn and an unknown amount of internal cash.

Gilbertson has a formidable reputation as deal maker, having personally orchestrated the tie-up with then-ailing Australian mineral company BHP and Billiton to create BHP Billiton.

It is not the first time that Gilbertson has had his eye on Anglo. Two years ago, he and investment banker Roddie Fleming are said to have proposed a friendly bid for a purchase of the company, based largely on a proposal to sell various Anglo Americans assets.

This was apparently rebuffed by Anglo.