BHP assures shareholders it is exploring options for its US shale unit
Melbourne — BHP Billiton is assuring shareholders that it is exploring numerous options for its contentious US shale unit amid pressure from activist investor Elliott Management to carry out a wider review of petroleum operations. In a series of meetings in Australia last week, CEO Andrew Mackenzie stressed to shareholders that the biggest mining company was open to selling parts of the onshore portfolio. Billionaire Paul Singer’s Elliott wants an independent review of BHP’s oil unit and claims the miner has destroyed about $31bn in value through its foray into US shale and failed petroleum exploration. Mackenzie’s message to investors on shale was "they want to try and extract maximum value out of the business and there’s a lot of different options", said Andy Forster, a Sydney-based senior investment officer at Argo Investments, which owns BHP shares, and who attended a meeting. "They still seem pretty wedded to the rest of the petroleum business." BHP declined to comment on detai...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.