SHARE OF THE WEEK: All eyes on Anglo American as bid deadline looms

All eyes will be on Anglo American this week as the deadline for rival BHP to make a formal takeover bid looms.

BHP has until 5pm on Wednesday to do so.

A takeover of London-listed Anglo could be the largest deal the sector has ever seen.

Anglo, whose empire includes De Beers diamonds, a potash mine in Yorkshire and vast copper and iron ore deposits, has agreed to enter talks with suitor BHP after rejecting the Australian miner’s £39billion offer.

It marked a significant concession by the Anglo board, which had rebuffed earlier bids worth £31billion and £34billion.

The decision to talk could pave the way for a deal.

City analysts have said that a bid of £40billion or more could seal a takeover for the FTSE 100 group.

But investors will keep a close eye on whether other predators pounce.

Glencore and Rio Tinto have both been rumoured to be mulling approaches.

Ben Davis, an analyst at Liberum, has suggested that a combined BHP and Glencore bid could deliver enough firepower to get a deal over the line.

Shares have surged higher on the takeover talk. The value of Anglo has jumped by over a quarter since the end of April.