BHP’s shares rise after Elliott Advisors suggest it spins off US oil assets
Hedge fund suggests the company unlocks value by scrapping its dual-corporate structure, demerges its oil business and rejigs its capital return policy
Sydney — BHP Billiton’s share price rose 7% to R234.36 on Monday morning after hedge fund manager Elliott Advisors suggested it spin off about $22bn of US oil assets. Elliott Advisors said on Monday it had sent a letter to BHP Billiton directors outlining a plan to unlock value by scrapping the mining giant’s dual-corporate structure, demerging its oil business and rejigging its capital return policy. "The goal is to provide details of the BHP shareholder value unlock plan to all of BHP’s shareholders so that BHP can engage openly with all parties on the plan," Elliott said in a statement. BHP did not immediately provide comment on the matter when contacted by Reuters. Elliott said it held a "long economic interest" of about 4.1% of the issued shares in London-listed BHP Billiton. That stake is worth $3.81bn, Reuters calculations showed based on Friday’s closing price. Elliott also said it held rights with its affiliates to acquire up to 0.4% of the issued shares in Sydney-listed BH...
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