Shares in OZ Minerals Limited (ASX:OZL) jumped nearly 40% after the mining major BHP Group PLC made an indicative offer of A$25.00 per share for the prominent ASX-listed copper and gold miner.
The offer values OZ at A$5.8bn.
OZ Minerals rejected the bid, but the market reaction indicates investors are betting that BHP - or someone else - will succeed.
BHP said the offer price represents a premium of 32.1% to OZ's closing price of A$18.92 per share on 5 August 2022, and a premium of 41.4% to OZ's 30-day volume-weighted average price of A$17.67 per share up to and including 5 August 2022.
"Our proposal represents compelling value and certainty for OZ Minerals shareholders in the face of a deteriorating external environment and increased OZL operational and growth related funding challenges,” said BHP chief executive Mike Henry.
"We are disappointed that the Board of OZL has indicated that it is not willing to entertain our compelling offer or provide us with access to due diligence in relation to our proposal."
OZ called the bid “opportunistic”.