De Beers shares were up 1.51 percent at 322.20 rand on the Johannesburg bourse but below a year-high of 343 rand. A spokesman for South African brokerage Barnard Jacobs Mellet, which is advising companies opposing the bid, declined to name other institutions unhappy with the proposed deal. Analysts said that Southeastern Asset Management, which owns some four percent of De Beers shares, had also objected to the deal but this could not be immediately confirmed. I'm less confident that the deal will go through than I was before.
Brandes are a significant shareholder.
Only 15 percent of shareholders need to object to the offer to end the transaction. De Beers shareholders will meet on May 4 to vote on the proposed bid that would make De Beers a private firm. Anglo American also had no immediate comment to make. The proposed deal will put an end to complicated cross-holdings between Anglo and De Beers that have put a brake on share price growth in both firms. The South African rand slid back to a record low of 8.185 against the dollar on news that the deal could be jeopardised.