Two weeks after
Elliott Management's surprise assault on BHP Billiton, the fund
manager's three-point demand for change is gaining little traction with
investors, prompting expectations a second strike is imminent.
While Elliott is struggling to push through a $46 billion overhaul of the Anglo-Australian miner, investors said it could point to BHP's plans for further sales of marginal assets and increasing shareholder returns as, potentially, some incremental victories.
"I think the case for agitating for management to do what a shareholder wants is always there," said Neil Boyd-Clark, portfolio manager at Arnhem Investment Management, a long-time holder of BHP's Australian shares.
Over the past year, Elliott has built up a minority stake in BHP and earlier this month told the company it had failed to deliver "optimal" value.
It demanded BHP spin off U.S. oil assets, ditch a corporate structure built on dual listings in London and Sydney and hand back more money to shareholders.
In a swift rebuff, BHP said the costs of the changes would outweigh the benefits.
While Elliott is struggling to push through a $46 billion overhaul of the Anglo-Australian miner, investors said it could point to BHP's plans for further sales of marginal assets and increasing shareholder returns as, potentially, some incremental victories.
"I think the case for agitating for management to do what a shareholder wants is always there," said Neil Boyd-Clark, portfolio manager at Arnhem Investment Management, a long-time holder of BHP's Australian shares.
Over the past year, Elliott has built up a minority stake in BHP and earlier this month told the company it had failed to deliver "optimal" value.
It demanded BHP spin off U.S. oil assets, ditch a corporate structure built on dual listings in London and Sydney and hand back more money to shareholders.
In a swift rebuff, BHP said the costs of the changes would outweigh the benefits.
No comments:
Post a Comment