Oppenheimers sell Anglo American shares

E. Oppenheimer & Son, the Oppenheimer family investment company, Friday sold part of its stake in diversified natural resources group Anglo American PLC (AAUK) to a Chinese investor, in a move one analyst said could precipitate a bigger deal.

The Oppenheimers have sold 17 million Anglo American shares to China Vision Resources Ltd., reducing their stake in the company to 2.29% from 3.3%, an Anglo American spokesman said. China Vision Resources is owned by "private individual" Larry Yung, the spokesman added.

China Vision paid some GBP425 million for the stake, according to a person familiar with the situation.

Larry Yung is chairman and managing director of CITIC Hong Kong (Holdings) Limited, and an executive director of the CITIC Group conglomerate. CITIC couldn't immediately be reached for comment.

In a press release, E Oppenheimer & Sons said it will continue to hold more than two percent of Anglo American, and will retain its 40% stake in diamond producer De Beers.

The Anglo American spokesman said, "This is part of the Oppenheimer family's stated intention to diversify their investments."

He added, "they remain fully supportive of the Anglo management team, the restructuring process under way and the appointment of (new chief executive) Cynthia Carroll," he added.

Anglo said Oct. 24 that Alcan Inc.'s Cynthia Carroll will become chief executive when current CEO Tony Trahar steps down in March, the first time in the mining company's history it will be headed by an outsider and a woman.

One analyst said the share purchase could herald the start of a bidding contest for Anglo American, saying it could be "the first tank on the lawn."

"Everyone had thought that Xstrata PLC (XTA.LN) or Rusal were going to wait," he said, "this could well change things dramatically."

Mining sector watchers regard Xstrata and Rusal as credible bidders for Anglo American. Anglo American is in the midst of a restructuring – spinning out its paper and packaging business and selling down its stake in AngloGold Ashanti (AU).

Xstrata declined comment.

But the analyst also said Chinese investors often take stakes in companies to have better leverage over them and as a consequence ensure a steady supply of raw materials.

The sale underscores China's attempts to bolster its hold on mining resources and accelerates Anglo's transformation from a chiefly South African gold and platinum producer to a global industrial metals producer.

At 1625 GMT, Anglo American's shares in London were trading up 25 pence, or 1.01%, at 2,490 pence, outperforming a downbeat mining sector.

In an emailed statement Rusal said its strategy was to strengthen its position in aluminium and alumina."

"No additional decisions concerning the strategy have been made so far," Rusal went on to say.

"Any change in the strategy is a prerogative of the Board of Directors of the United Company which will be formed by 1 April 2007. Any changes in the strategy are possible only when the deal is closed."

Rusal is currently finishing up a deal to form the world's biggest aluminium company, combining with smaller Russian peer Sual Group and the alumina assets of Swiss commodities trader Glencore International AG.

HSBC Holdings PLC (0005.HK) advised China Vision Resources.

Founded in 1917 by Ernest Oppenheimer to exploit the world's biggest gold field near Johannesburg, Anglo expanded into banking and sugar as the country's isolation during apartheid stopped it buying mines elsewhere.

It moved headquarters to London in 1999 and has since bought copper mines in Chile and asphalt businesses in the U.K. Anglo also took over Johannesburg-based diamond producer De Beers, of which the Oppenheimers hold 40 percent.

E. Oppenheimer & Son, will invest more of its money in African non-mining businesses and South African private