Elliott to meet BHP shareholders

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.