Anglo said it had engaged extensively with BHP and its advisers about the deal’s structure and associated execution and value risks for its shareholders over the past week.

BHP shares declined on Thursday, finishing the session 1.7 per cent lower at $44.30.

The world’s largest miner didn’t change its final offer of 0.8860 BHP shares for each Anglo share, but had made further commitments to get the deal across the line. They included a reverse break fee if the complex demerger BHP required as part of the deal failed and social undertakings for the South African business.

A key sticking point remained BHP’s complicated transaction structure, which required Anglo to offload majority holdings in its South African platinum and iron ore businesses before a merger could go ahead.

Anglo says that process would take about 18 months, by which time it expects its own restructuring plan to divest its less profitable coal, nickel, diamond and platinum operations, announced in a flurry two weeks ago by chief executive Duncan Wanblad to counter BHP’s bid, will be completed.

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It argued the demerger created too much risk for its own shareholders and wanted BHP to change the deal’s structure or compensate its shareholders for any loss of value as a result of spinning off the assets.

”While we believe an acquisition of Anglo would be a longer term positive for BHP, the fact that BHP is being disciplined in its approach is a near-term positive for its shares,” Jefferies analyst Christopher LaFemina told Reuters.

“That said, we are surprised BHP did not have a plan to overcome the clear structural issues relating to this deal.”

Barrenjoey analyst Glyn Lawcock, a veteran BHP watcher, gave Henry a tick. “He saw an opportunity” and had bid against himself twice.

“BHP can sit in the back row for a little while and contemplate what they do,” Lawcock said. Anglo’s new strategy may simplify the business over the next six months, giving BHP less to do if interested down the track, or it might look at other copper acquisitions, he added.

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