/ 28 September 2000

ANGLO QUESTIONS DE BEERS CROSS-HOLDING

ANGLO American Plc Chief Executive Tony Trahar says there is ”no particular logic” anymore for Anglo’s cross-holding with sister company, diamond giant De Beers. Trahar said diamonds would continue to play a key role in Anglo’s future, but declined to be more specific. ”Both businesses are performing extremely well and they contribute to each other’s cross-holding very meaningfully. But there is no particular logic for the cross-holding to continue,” Trahar said. ”I would be surprised if over the next two years something doesn’t change.” De Beers holds a 35.4% stake in London-listed Anglo, which itself has a 33.2% interest in the world’s biggest diamond producer. Analysts say breaking up the cross-holding structure is a key issue for investors. – Reuters