HEDGE FUNDS – UNITED STATES

Elliott push to overhaul BHP’s board

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Original article by Paul Garvey
The Australian – Page: 20 : 15-Jun-17

BHP Billiton will shortly select a successor to chairman Jac Nasser, but Elliott Management says the resources group should use the leadership change to undertake sweeping changes to its board. The activist hedge fund argues that many directors have been the board for a long time and approved acquisitions and share buybacks that have contributed to BHP’s underperformance. There is support among BHP shareholders for Elliott’s proposal to divest its petroleum assets, although some of the hedge fund’s other proposals have gained little traction.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, AMP CAPITAL INVESTORS LIMITED, AMCOR LIMITED – ASX AMC, ORICA LIMITED – ASX ORI, WESTPAC BANKING CORPORATION – ASX WBC

Survey skewers BHP as activists eye ‘major’ board changes

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Original article by Peter Ker, Matthew Stevens
The Australian Financial Review – Page: 15 : 7-Jun-17

A survey carried out by Global Proxy Solicitation has found that nearly 48 per cent of BHP Billiton’s retail shareholders agree that a restructuring of the resources group is needed. In contrast, only 15.33 per cent oppose Elliott Associates’ push for a restructuring. Meanwhile, more than 36 per cent of respondents said BHP CEO Andrew Mackenzie has dealt with the activist hedge fund effectively. Global Proxy Solicitation had identified BHP as a potential target for activist investors in a report that was released in November 2016.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP, ELLIOTT MANAGEMENT CORPORATION, GLOBAL PROXY SOLICITATION PTY LTD, MORROW SODALI GLOBAL LLC, TRIBECA INVESTMENT PARTNERS PTY LTD, RIO TINTO LIMITED – ASX RIO, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION

Expect more shareholder activism Down Under, warns Credit Suisse

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 19 : 23-May-17

Chris Young of Credit Suisse says it was inevitable that activist hedge funds would target Australian companies. He adds that the investment bank’s research suggests that BHP Billiton will not be the only Australian company to attract the interest of activists. Young says the best defence against activists is for a company to ensure that it has the support of key shareholders. He also notes that the relatively small size of the Australian market means activist funds may get less traction than in the much larger US market.

CORPORATES
CREDIT SUISSE AG, BHP BILLITON LIMITED – ASX BHP, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP, ELLIOTT MANAGEMENT CORPORATION, SAMSUNG ELECTRONICS COMPANY LIMITED, CANADIAN PACIFIC LIMITED, PERSHING SQUARE CAPITAL MANAGEMENT LP

Argus slams Elliott bid to overhaul BHP

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 5-May-17

Australian businessman and former BHP Billiton chairman Don Argus says the conditions imposed on the company to gain government approval for its 2001 merger will thwart Elliott Management’s push to scrap the dual listing. BHP itself has suggested that the activist hedge fund’s proposal is unlikely to gain regulatory approval, while Treasurer Scott Morrison has signalled that unwinding the dual listing would not be in the national interest. Meanwhile, Rio Tinto chairman Jan du Plessis says his company has considered and rejected abolishing its own dual-listed structure on a number of occasions.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP, RIO TINTO LIMITED – ASX RIO, ARNHEM INVESTMENT MANAGEMENT PTY LTD, AUSTRALIA. DEPT OF THE TREASURY

Fund urges BHP board overhaul

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 1 & 14 : 5-May-17

The Tribeca Global Natural Resources Fund has outlined a four-point plan for BHP Billiton. Tribeca says BHP should use the retirement of chairman Jac Nasser to pursue boardroom renewal. It argues that the current board has overseen the loss of some $US30bn of shareholder wealth, adding that this could have topped $US80bn if more mergers and acquisitions had gone ahead. Tribeca favours retention of BHP’s dual listing, although it supports Elliott Associates’ proposal for BHP to offload its US onshore petroleum assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, TRIBECA GLOBAL NATURAL RESOURCES FUND, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP, ELLIOTT MANAGEMENT CORPORATION, TRIBECA INVESTMENT PARTNERS PTY LTD

Treasurer blocks BHP offshore move

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Original article by Emily Ritchie
The Australian – Page: 1 & 6 : 4-May-17

The Federal Government has signalled that it would intervene to thwart any attempt to shift BHP Billiton’s primary sharemarket listing to the UK. Treasurer Scott Morrison says retaining BHP’s dual listing is in the national interest, given the resources group’s economic contribution to Australia and BHP’s large domestic shareholder base. BHP itself has estimated that the proposal by activist hedge fund Elliott Management would cost around $US1.3bn ($A1.73bn). Morrison has also suggested that BHP directors could face criminal and civil action if the dual listing is abolished.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. DEPT OF THE TREASURY, ELLIOTT MANAGEMENT CORPORATION, MOODY’S INVESTORS SERVICE INCORPORATED, ARCONIC INCORPORATED, ALCOA INCORPORATED

Moody’s deals blow to Elliott BHP plan

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Original article by Peter Ker
The Australian Financial Review – Page: 25 : 4-May-17

Moody’s Investors Service has upgraded BHP Billiton’s "A3" credit rating outlook from "stable" to "positive". The ratings agency has cited factors such as BHP’s prospects for further growth in earnings and free cashflow due to the continued strength of commodity prices. However, Moody’s adds that the restructuring proposals of activist hedge fund Elliott Management could adversely affect BHP’s credit rating.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MOODY’S INVESTORS SERVICE INCORPORATED, ELLIOTT MANAGEMENT CORPORATION, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP

Elliott spruiks BHP plan to Sydney hedge funds

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Original article by Peter Ker, John Kehoe
The Australian Financial Review – Page: 15 : 3-May-17

Representatives of activist US hedge fund Elliott Associates have organised meetings with Sydney-based institutional investors as it seeks to gain support for its proposal for a restructuring of the resources giant. However, some large local investors have indicated that they have not held talks with Elliott and will not back its proposals. Elliott has also been targeting several other global companies, including Arconic and Samsung.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP, ELLIOTT MANAGEMENT CORPORATION, ARCONIC INCORPORATED, SAMSUNG ELECTRONICS COMPANY LIMITED, ALCOA INCORPORATED

BHP lists ‘major flaws’ in Elliott’s restructure plan

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Original article by Paul Garvey
The Australian – Page: 19 & 32 : 13-Apr-17

BHP Billiton CEO Andrew Mackenzie says the resources group has examined the restructuring proposals put forward by Elliott Management and concluded that they do not make economic sense and are not in the interests of shareholders. BHP argues that scrapping the dual listing would be costly and would have no significant benefits, while it would be unlikely to gain regulatory approval in Australia. Mackenzie also says BHP has concluded that its mining and petroleum businesses are stronger as a single entity.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, MORGANS FINANCIAL LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. DEPT OF THE TREASURY

BHP pressured on oil spin-off

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Original article by Paul Garvey
The Australian – Page: 17 & 22 : 11-Apr-17

BHP Billiton has rejected a restructuring proposal that has been put forward by US-based hedge fund Elliott Management, arguing that any potential benefits would be exceeded by the costs and risks associated with the plan. Elliott says BHP should abandon its dual-listed structure and demerge its US petroleum assets into a separately-listed company. Elliott believes that the restructuring proposal could boost the value of BHP shares by around 50 per cent.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, SOUTH32 LIMITED – ASX S32, QUINTIS LIMITED – ASX QIN, GLAUCUS RESEARCH GROUP CALIFORNIA LLC