El­liott to meet BHP share­hold­ers

New Straits Times - - Business - PETER O’CON­NOR

SYD­NEY: El­liott Man­age­ment will meet with BHP Bil­li­ton’s Aus­tralian share­hold­ers this week as the ac­tivist in­vestor pushes for strate­gic changes at the world’s big­gest miner, said sources fa­mil­iar with the mat­ter yes­ter­day.

The two sources said El­liott was seek­ing feed­back from other in­vestors about its pro­posed over­haul of BHP.

Over the past year, El­liott has built up a 4.1 per cent stake in BHP’s Bri­tish arm and last month told the com­pany it had failed to de­liver “op­ti­mal” value.

El­liott, led by United States fi­nancier Paul Singer, de­manded BHP spin off its US oil as­sets, ditch a cor­po­rate struc­ture built on dual list­ings in Lon­don and here, as well as hand back more money to share­hold­ers.

BHP swiftly re­jected the ap­proach, say­ing the costs of the changes would out­weigh the ben­e­fits. But El­liott could be gain­ing some trac­tions, ac­cord­ing to in­vestors.

An­a­lysts said El­liott would likely push its case for a re­vamp of BHP’s US oil busi­ness, af­ter BHP on April 26 said it was pro­gress­ing the sale of on­shore US petroleum in­ter­ests at two key fields.

BHP said the plan had been in the works prior to El­liott go­ing pub­lic with its pro­pos­als.

“It’s clear they (El­liott) aren’t go­ing to give up,” said Shaw and Part­ners an­a­lyst Peter O’Con­nor. Reuters

It’s clear they (El­liott) aren’t go­ing to give up.

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