Elliott builds Anglo American stake as miner faces takeover [Video]

Elliott Management has built a roughly $1 billion stake in miner Anglo American in recent months, a person familiar with the matter told CNBC.

The activist’s U.K. arm, Elliott Advisors, in a regulatory filing Friday confirmed after publication that it had a 2.5% interest in Anglo American. The position, which consists of cash-settled derivatives, is worth around £891 million, or roughly $1.1 billion. Anglo American shares were up as much as 5% on the news Friday.

News of the activist’s position comes as the $43 billion, London-based miner faces takeover interest from BHP, a mining giant with worldwide operations. Anglo rejected BHP’s $39 billion takeover offer Friday morning, saying BHP’s offer “significantly undervalues Anglo American and its future prospects.”

Anglo American declined to comment. The company is one of the largest producers of copper in the world.

BHP’s bid would have called for the spinoff of Anglo American’s South African subsidiaries. The metal plays a critical role in the …