BHP Rebuffs Billionaire's Hedge Fund Over Proposal for Overhaul
- Elliott pushes to spin off business and buy back some shares
- Mining company says fund’s proposal is not worth the cost
BHP Says Costs of Elliott Proposals Outweigh Benefits
BHP Billiton rejected a proposal by billionaire Paul Elliott Singer’s hedge fund to overhaul its business, setting up further clashes between the world’s largest miner and an investor with a record of protracted disputes with companies.
New York-based Elliott Management Corp., which owns 4.1 percent stake in BHP, urged the company to spin off U.S. oil assets the fund valued at $22 billion. It also wants the company to combine its two legal entities listed in Sydney and London into one group headquartered in Australia and traded in the U.K., according to a letter it made public Monday. BHP responded by saying it’s been in talks with Elliott for months, and the costs and risks associated with the proposals outweigh the benefits.