July 26, 2019 / 10:33 AM / 23 days ago

BUZZ-Anglo American: In a downward spiral as top investor Agarwal exits stake

(Updates share prices, adds analyst comment, Bloomberg report)

** Miner’s shares drop 4.9% to 2,080p, biggest loser on FTSE 100 and on track for worst day in nearly one yr

** Company’s biggest shareholder Anil Agarwal said late Thursday he was divesting his ~20% stake

** Indian billionaire Agarwal’s Volcan family trust held 19.3% stake in AAL; Stock had nearly doubled since he invested in the co

** News comes hours after Anglo American announced strong earnings, a dividend raise and a $1 bln stock buyback on Thursday

** Bloomberg reports here Agarwal will get about $500 million from investment

** Shares of Vedanta, where Agarwal is chairman, drops 4.3%; co is set to report results on Friday

** Agarwal said stake sale was unrelated to Vedanta and he was not planning a takeover bid

** BMO says dramatic rise in AAL’s stock and “the understandable board and management deal reticence”, meant any takeover approach was unlikely

** Stock has gained ~20% this year vs a 12% rise in 2018 and ~33% jump in 2017, when Agarwal bought into AAL (Reporting by Yadarisa Shabong in Bengaluru)

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