HEDGE FUNDS – UNITED STATES

Activist sees end of BHP dual-list

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Original article by Paul Garvey
The Australian – Page: 19 : 5-Feb-19

Activist hedge fund Elliott Management argues that BHP’s $529m settlement of a tax dispute in November has strengthened the case for the abolition of its dual-listed structure. Elliott CEO Paul Singer believes that such a move would have broad support among BHP shareholders in the wake of the deal with the Australian Taxation Office regarding its Singapore marketing hub. However, British shareholders may be reluctant to support scrapping the dual listing, which could potentially result in BHP’s removal from the FTSE 100.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, AUSTRALIAN TAXATION OFFICE, FTSE 100 INDEX, FEDERAL COURT OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC

BHP shareholders back Elliott

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Original article by Matt Chambers
The Australian – Page: 19 & 30 : 9-Feb-18

Clarke Wilkins of Citigroup says BHP Billiton’s market valuation could rise if its dual-listed structure is abolished, although he adds that a number of factors would determine the extent of any such upside. Activist hedge fund Elliott Management has reignited the debate on BHPs dual listing, calling for an independent review of the costs and benefits of shifting to a primary listing in Australia. Brenton Saunders of BT Financial Group and Andrew Preston of Aberdeen Standard Investment support Elliott’s proposal.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, BT FINANCIAL GROUP PTY LTD, ABERDEEN STANDARD INVESTMENT, FTI CONSULTING INCORPORATED

Elliott’s new push to end BHP dual listing shaky

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Original article by Matt Chambers
The Australian – Page: 20 : 8-Feb-18

A report produced by FTI Consulting on behalf of Elliott Management estimates that the financial benefits of abolishing BHP Billiton’s dual-listed structure could be worth about $US22bn. However, some $US14.1bn of this figure is based on the average performance of other companies that have scrapped dual listings. The report also concludes that shifting to a primary listing in Australia would release some $US8.7bn worth of franking credits, as the proportion of Australian investors on BHP’s share register would rise. BHP’s own cost-benefit analysis shows that scrapping the dual listing would result in costs of $US1.2bn.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, FTI CONSULTING INCORPORATED

AFIC shuts down BHP activists over ‘agitating change’

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 11-Oct-17

Activist hedge fund Elliott Management is believed to have renewed its push for a restructuring at BHP Billiton. However, Australian Foundation Investment Company MD Ross Barker says investors should give BHP’s new chairman Ken MacKenzie sufficient time to make his mark on the resources group before advocating change. He adds that BHP’s management team seems to be acting in the interests of shareholders and there is no need for change at present.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, DJERRIWARRH INVESTMENTS LIMITED – ASX DJW, CGI GLASS LEWIS PTY LTD, RIO TINTO LIMITED – ASX RIO

Elliott holds fire on BHP board

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Original article by James Thomson
The Australian Financial Review – Page: 18 : 25-Aug-17

Elliott Management holds five per cent of BHP Billiton’s London-listed shares, but the activist hedge fund has chosen not to seek representation on the board at the 2017 AGM. Nominations closed in late August, and Elliott has declined to comment on speculation that its decision was linked to Grant King’s recent resignation from BHP’s board. Incoming chairman Ken MacKenzie has met extensively with shareholders, who expressed their dissatisfaction with King’s appointment to the board in early 2017.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, ORIGIN ENERGY LIMITED – ASX ORG, WESFARMERS LIMITED – ASX WES, BP AUSTRALIA LIMITED, BUSINESS COUNCIL OF AUSTRALIA

Gordon, Murdoch in Ten seat after Oaktree exit

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Original article by Bridget Carter
The Australian Financial Review – Page: 19 : 24-Aug-17

A decision by the Australian Competition & Consumer Commission on whether it would approve the acquisition of Ten Network by Lachlan Murdoch and Bruce Gordon is said to be imminent. They have emerged as the leading contenders to buy Ten following reports that hedge fund Oaktree Capital has withdrawn its offer, which was made jointly with Anchorage Capital Group. Murdoch and Gordon are believed to have offered around $A250m for Ten.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, OAKTREE CAPITAL MANAGEMENT LLC, ANCHORAGE CAPITAL GROUP LLC, PPB ADVISORY, MOELIS AND COMPANY, KORDA MENTHA AND COLLEAGUES PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CREDIT SUISSE (AUSTRALIA) LIMITED, NEWS CORPORATION – ASX NWS, WIN CORPORATION PTY LTD

Elliott holds fire on BHP amid ‘smarter’ strategy

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Original article by Matt Chambers
The Australian – Page: 20 : 17-Aug-17

Elliott Management has welcomed the business strategy BHP Billiton has adopted since the US hedge fund began lobbying for a restructuring of the resources group. The activist investor has disclosed that it has become a substantial shareholder, with direct ownership of five per cent of BHP’s London-listed shares. It previously had exposure to BHP via derivatives. Elliott also has an 0.5 per cent economic interest in BHP’s Australian-listed shares.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, BLOOMBERG LP, BLACKROCK INCORPORATED, THE VANGUARD GROUP INCORPORATED, ABERDEEN ASSET MANAGEMENT LIMITED

BHP slip-up to provide more ammo for Elliott

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 21-Jul-17

BHP Billiton has restated its 2016 financial accounts after conceding that there were problems with the processes it had used to determine the impairment charges on US shale assets. Ross Illingworth, the executive director of Kingfisher Capital Partners, says the admission will strengthen Elliott Management’s case for a restructuring at BHP. Meanwhile, Elliott has likened BHP’s proposal to develop the Jansen potash project in Canada to its ill-fated foray into US shale.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, KINGFISHER CAPITAL PARNERS, ELLIOTT MANAGEMENT CORPORATION

Activist Elliott targets BHP retail shareholders

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Original article by Leo Shanahan
The Australian – Page: 19 : 19-Jul-17

US-based hedged fund Elliott Management is seeking the support of BHP Billiton’s retail investors for its proposed restructuring strategy for the resources giant. Elliott has also launched a revised website pitched at institutional investors. The activist hedge fund has accused BHP’s management of being responsible for the loss of some $US40bn ($A51bn) of shareholder wealth due to poor decisions. Elliott’s proposed reforms include scrapping BHP’s dual listing structure.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, AUSTRALIA. DEPT OF THE TREASURY

Grech steps aside from Slater + Gordon

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Original article by Jonathan Shapiro, Sarah Thompson
The Australian Financial Review – Page: 15 & 24 : 30-Jun-17

The board of embattled law firm Slater & Gordon will resign in the wake of a debt-for-equity deal with a group of international institutional investors. US hedge fund Anchorage Capital will emerge as the major shareholder in the listed law firm, while investment banks and distressed debt funds will also convert their debt into equity. Slater & Gordon’s veteran MD Andrew Grech will stay at the firm as a non-executive director until a successor is appointed. The firm incurred large losses following its expansion into the UK market.

CORPORATES
SLATER AND GORDON LIMITED – ASX SGH, ANCHORAGE CAPITAL PARTNERS PTY LTD, YORK CAPITAL MANAGEMENT LP, TACONIC CAPITAL ADVISORS LP, DAVIDSON KEMPNER CAPITAL MANAGEMENT LP, RIVER BIRCH CAPITAL, METRIC CREDIT PARTNERS, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, DEUTSCHE BANK AG, QUINDELL PLC, MIRVAC GROUP – ASX MGR, MAURICE BLACKBURN PTY LTD