Jan 19, 2006. /Lesprom Network/. Anglo American, a leading company in the mining and natural resources sectors, plans to demerge or sell Mondi, its paper and packaging division, to increase its focus on the mining businesses, the Sunday Times reported. Anglo American, run by chief executive Tony Trahar, has appointed UBS, the investment bank, to either sell or demerge Mondi into a separate company worth GBP 3 billion. Mr. Trahar and Sir Mark Moody-Stuart, Anglo American’s chairman, will need to address the needs of its various shareholders. It is thought London-based fund managers believe the company should grant them new shares in Mondi instead of raising cash through a sale. They believe the company is already generating huge returns from its mining assets and is not in need of additional capital. But some continental and American investors who have already bought into other packaging companies are lobbying for a sale. Analysts are encouraged by the bank appointments, which indicate that the sale process could be completed within six months. Charles Kernot at Seymour Pierce said: "We have heard a lot of talk from the company and we have been waiting for things to happen. This is now a clear sign that it is gearing up for action in 2006." Anglo American also appointed other investment banks as advisers to sell other non core businesses.