Anglo American PLC (LSE:AAL) shares were in demand on Monday after the miner rejected a takeover bid from rival giant BHP Group Ltd (LSE:BHP, ASX:BHP) at the end of last week.
Investors and analysts seem optimistic that this will not be the end of the story, helped by weekend stories via 'sources familiar with the matter' that BHP is mulling an improved offer.
The plot also potentially further thickened with the news that Elliott Investment Management has built a $1 billion stake in Anglo, according to Bloomberg.
BHP's offer was an all-share bid that valued Anglo at £31 billion, but it was rebuffed for significantly undervaluing the business, condemning the transaction as "complex" and "uncertain" due to the execution risks in the proposed spin-outs of its Kumba and Amplats arms.
Analysts at Stifel said "a sweetened offer [is] expected should BHP want to secure Anglo’s coveted copper assets", which represent almost a third of total production.
Those at Jefferies said they "would be surprised if other bidders didn't emerge".
Deutsche Bank's mining research team said the proposed price "appears low in our view", well below their sum-of-the-parts valuation.
Bloomberg reported on Friday that activist investor Elliott, led by Paul Singer, has exposure to around a 2.5% share in Anglo via derivatives, having amassed the holding over recent months.