Anglo says offer significantly undervalues the company
BHP shares close 4.6 lower in Australia
Some investors say higher price needed to seal a deal
Anglo shares rise 5.7 on Elliott stakebuilding

LONDON, April 26 Reuters Anglo American rejected rival miner BHP Group39;s 31.1 billion pound 39 billion takeover proposal on Friday, saying the bid significantly undervalued the Londonlisted company and its future prospects.

Australia39;s BHP, which has until May 22 to make a binding bid, is expected to sweeten its offer to try to clinch a deal that would create the world39;s biggest miner of copper, a metal central to the clean energy shift, accounting for about 10 of global output.

Anglo39;s Londonlisted shares were trading 5.7 higher at 27.04 pounds by 1303 GMT. Activist fund Elliott has built a 1 billion position, according to a person with knowledge of the stake, which buoyed the stock.

Anglo said the complex structure of the deal created uncertainty and that it was wellpositioned to create significant value from assets aligned with the energy transition and other major demand trends.

The company started a strategic review of its assets in February in response to a 94 fall in annual profit and a series of writedowns caused by lower commodity demand.

The BHP proposal is opportunistic and fails to value Anglo American39;s prospects, while significantly diluting the relative value upside participation of Anglo American39;s shareholders relative to BHP39;s…