London-based mining company Anglo American rebuffed a £31 billion (€36.24 billion) approach from Australia’s BHP.

On this episode of In the City, we discuss how the offer came together, what happens next and what it means for the future of FTSE.

Barrick Gold is not interested in bidding for Anglo American, which last week received a $39 billion takeover offer from BHP, and is building its own copper portfolio, the Canadian miner's CEO Mark Bristow said on Wednesday.

U.K.-based mining giant Anglo American has rejected a 31 billion pound ($39 billion) takeover offer from BHP Group, saying it significantly undervalues the company and its growth potential

The London-listed mining giant said the bid “significantly undervalues” the company, setting the stage for a potential bidding war.

Anglo American on Friday said it had rejected BHP’s £31.1 billion ($39 billion) all-share takeover offer, arguing the Australian company’s proposal “significantly undervalues” the British firm and its future prospects.

Anglo rejected the preliminary offer on Friday as “highly unattractive” but investors expect BHP to return with an improved deal or for a rival to emerge with a competing bid. “I think there could be a lot of interloper risk,

Analysts said the bid needs to be more than £40bn to tempt Anglo to accept the deal. A bidding war could push the valuation higher.

Anglo American shares surged Thursday after mining giant BHP approached it about making a takeover bid. Anglo American AAL, +12.40% shares rose 11% in initial London trade, while BHP BHP, -2.96% BHP, -0.59% fell 3%.