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BHP investors wary of overpaying for Anglo

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BHP shares down 1.6%, roughly in line with peers

(Recasts with investor and analyst comments)

By Melanie Burton and Scott Murdoch

SYDNEY, May 30 (Reuters) - Investors welcomed BHP

Group's ( BHP ) decision to walk away from a $49 billion plan

to take over its rival Anglo American, which rejected

three proposed offers from the top global miner over the past

six weeks.

While BHP's Australian-listed shares fell 1.6% on Thursday,

they were in line with its peers.

"As investors, it wasn't obvious that the proposed deal

was very accretive. Yes it would bring more copper to the

portfolio, but depending on what they paid for it, it's not

necessarily accretive to the share price," said Brenton

Saunders, Pendal Group portfolio manager.

Anglo said after BHP's statement on Wednesday that it was

fully focused on delivering plans it has set out to increase

value to shareholders.

BHP's decision to withhold a binding bid came after Anglo

said it would not grant the Australian-headquartered mining

group a further extension to iron out details of a deal.

The developments ended a tense standoff between the two

global mining giants and negotiations in which shareholders

warned BHP not to pay too much to secure control over Anglo.

"This removes the risk of them overpaying and the big

dilutionary share issue," said John Milroy, a private wealth

adviser at Ord Minnett.

"Clearly they remain acquisitive and will be shifting

through their other targets for building out the copper

portfolio."

BHP aimed to win control of Anglo's prized copper assets in

Latin America and increase access to a metal central to the

global shift towards clean energy and electric vehicles, and

analysts expect it will look for ways to seal a deal down the

track.

"BHP will bide its time for six months and see how investors

agitate on the Anglo side," said analyst Kaan Peker of RBC in

Sydney.

The structure of BHP's proposal was the major stumbling

block which required Anglo to unbundle its South African

platinum and iron ore businesses.

Defending its position to reject BHP, Anglo outlined plans

to divest its less profitable assets and focus on expanding

copper output.

Anglo's shares closed 3% lower at 24.80 pounds in London

trading on Wednesday.

BHP now has to wait six months before it can approach Anglo

again under the British corporate laws, but it can return if a

new party bids for its takeover target.