"afr" declare : BHP dismisses activist investor Elliott Associates' idea to split petroleum assests

"After reviewing the elements of Elliott's proposal, we have concluded that the costs and associated risks of Elliott's proposal would significantly outweigh any potential benefits." "BHP Billiton's approach is to optimise the long term value of the Petroleum business through operating excellence," said BHP. BHP Billiton has disclosed the information the market needs to fully value the Petroleum business," said the company. "We have had dialogue with Elliott over many months, consistent with our commitment to shareholder engagement," said BHP in a statement. In a statement published after Elliott went public with its campaign to pressure BHP directors into making the changes, BHP confirmed that it had met with Elliott and discussed the ideas "over many months".


according to A sign adorns the building where mining company BHP Billiton has their office in Perth, Western Australia, November 19, 2015. Elliot's $3.8 billion investment, or 4.1 percent stake, in BHP shows how U.S. hedge funds are increasingly exporting their activist shareholder playbook overseas. The fact that Elliott has a commodity trading business helped Elliott familiarize itself with BHP. "Asking the right question as an activist shareholder is not enough, if you do not have a stick available to you, you become like a professor who has no power. U.S. activist investors have for years called on companies to deploy various financial engineering techniques, from spinning off assets to tweaking their corporate structure, in order to boost the value of their stock.

Elliott Applies U.S. Activist Investor Tactics to BHP Offensive
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Inside Paul Singer's Elliott Management stalking BHP Billiton

The push for a big shake up at BHP has triggered private discussions for months between the firm's investment managers and the "highest levels" of BHP management, according to a person familiar with the situation. "[BHP] better know what they're doing because these guys [Elliott] are the real deal," said a NY-based Australian hedge fund manager. Elliott argues its detailed 39-page plan for BHP could return $US33 billion of capital to shareholders, via share buybacks, over five years. Elliott's billion-dollar wins Elliott has waged hardline campaigns for management shake-ups, company restructurings and financial overhauls across a range geographies and industries, especially technology. Patrick HamiltonMany other creditors less persistent than Elliott copped losses of about 70 per cent in negotiated settlements.

Inside Paul Singer's Elliott Management stalking BHP Billiton


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