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By Jeffrey Sparshott
Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- Global diversified miner Anglo American PLC (AAL.LN) Thursday ousted three top managers, restructured its operations and said it would sell off a handful of assets as it looks to wring more value out of the company's vast metals and minerals holdings.
The announcement comes a week after rival Xstrata PLC (XTA.LN) walked away from a proposal to merge the two companies and continuing speculation that it will renew its offer if shareholders think Anglo's management is underperforming.
"Xstrata has six months before it can rebid, and Anglo American will likely show a renewed sense of urgency through this time and will likely pull out all the stops to win shareholders over," Credit Suisse analyst Michael Shillaker said in a note to clients.
Anglo said businesses that accounted for 11% of core profit last year are now up for sale. Thursday it announced it would sell its Scaw Metals steel business, Copebras fertilizers business, Catalao alloy business and its portfolio of zinc assets. Aggregates business Tarmac has been slated for disposal since 2007, though the process stalled in 2008 as credit markets seized and the company doesn't expect a quick sale.
All together, the companies slated for divestment contributed $1.3 billion toward the group's 2008 earnings before interest, taxes, depreciation and amortization, or Ebitda, the company said.
"The portfolio changes we have announced are the logical next step in focusing the group on our core mining activities, enabling us to strengthen our balance sheet further," Chief Executive Cynthia Carroll said in a statement.
This year the miner has shed its stakes in gold, sugar and aluminum businesses.
Anglo also said it would reorganize and eliminate a layer of management, moves that will cost Philip Baum, chief executive for Anglo Ferrous Metals, Ian Cockerill, head of Anglo Coal, and Russell King, chief strategy officer, their jobs. They could not immediately be reached for comment.
"All three were closely associated with Cynthia Carroll, indicating that the new chairman has had a very significant influence on this corporate move. An age of indecision appears to be over," Liberum Capital analyst Michael Rawlinson said in a note to clients.
John Parker took over as Anglo's chairman Aug. 1 as the company fought remain independent from Xstrata. Shareholders have credited him with injecting new energy into the company and hastening structural changes.
Parker in a statement said the revamp is "an important step in creating a more streamlined business, with enhanced focus on operational effectiveness and project delivery."
The company will now be organized around Anglo's core commodities and geographies: with platinum based in South Africa, copper in Chile, nickel in Brazil, metallurgical coal in Australia, thermal coal in South Africa, subsidiary Kumba Iron Ore Ltd. (KIO.JO) in South Africa and other iron ore in Brazil.
"The delayering creates the opportunity for a new generation of executive management to come through and I look forward to working with them," Carroll said.
The reshuffle is expected reduce overhead staff by about 25% and save $120 million per year, the company said.
At 0926 GMT, Anglo's shares were down 47 pence, or 2.1%, at 2,230 pence, roughly in line with a broadly weaker mining sector.
Company Web site: www.angloamerican.co.uk
-By Jeffrey Sparshott, Dow Jones Newswires; +44 (0)207 842 9347; jeffrey.sparshott@dowjones.com