BHP, the world's largest miner, is expected by 5 pm London on Wednesday to either announce an intention to make a firm offer for Anglo American or abandon the move for the next six months under UK takeover regulations.
Bloomberg quoted unnamed sources as saying that BHP is considering improving its bid but has not done so.
The impending deadline followed a week loaded with events of controversy, during which BHP disclosed that its request to increase the number of shares it was offering for the rest of Anglo had been rejected for a second time.
Anglo's chief executive, Duncan Wanblad, then presented his strategy to restructure the company the following day: divesting from platinum, diamonds, and coal, as well as delaying an unpopular fertiliser project.
Given Anglo's announcement's similarities to its plan, particularly the intention to spin off the platinum business, BHP is now considering how it may draw Anglo shareholders into the fray to pressure the smaller miner to start talks.
Before taking over Anglo's copper holdings, which are the envy of the industry, BHP chief executive Mike Henry wanted the company to spin off its South African platinum and iron ore companies.
The acquisition would be the industry's biggest deal in over a decade and establish the world's largest copper producer, accounting for 10% of global supply, at a time when mining companies and investors are planning for a supply deficit.
While some shareholders have backed Anglo's move, its two largest owners, BlackRock Inc. and South Africa's Public Investment Corp., have not yet spoken out.
The pair will be crucial, holding 18% of Anglo's equity.
Anglo could request a deadline extension, but it has no plans to do so, according to Bloomberg sources.
No hostile offer to Anglo shareholders is planned if the board rejects it.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
