Jefferies & Co Gives BHP Billiton PLC Price Target With Potential 43.7% Upside

Reuters

Elliott has carried out talks in the past month with investors holding tens of billions of dollars of BHP shares and believes there's "extremely broad and deep-rooted shareholder support" for an assessment of the petroleum division, the New York-based fund said Tuesday in a statement, without naming the shareholders.

Among their demands, Elliott Management wants to see BHP end their dual-listing, spin off oil and gas assets in the USA and increase returns to shareholders.

Elliott Management previously wanted BHP end the company's dual-listing for its equity, a move which could potentially make the company more approachable.

BHP Billiton boss Andrew Mackenzie has agreed to meet his tormentors at Elliott Advisers after the U.S. activist investor ramped up its criticism of the mining giant's "do-nothing approach", which some analysts felt was not totally justified.

On Monday, BHP launched a rebranding that drops Billiton from its logo and removes the three stylized blobs that have featured for years, in an advertising campaign that highlights its Australian heritage.

Andrew Mackenzie, CEO of BHP Billiton, has issued a fresh update on the company's progress to grow long-term shareholder value.

- Elliott called on BHP on April 10 to restructure its current corporate structure, which consists of a United Kingdom and an Australian company, and spin off its petroleum unit.

Mackenzie gave a speech to the conference on Tuesday where he reiterated his confidence in boosting the value of the company by up to 50% and nearly double the return on capital, through cutting costs and carefully managing assets.




"We acknowledge that the acquisitions that took us into this business were poorly timed, that we paid too high a price", Mackenzie said, pointing to a reduction in operating costs within the business.

Receive BHP Billiton PLC News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BHP Billiton PLC with MarketBeat.com's FREE daily email newsletter.

BHP has invested too much - $8 billion alone on petroleum exploration since 2002 that the fund says has produced nearly no return. BHP would also change its logo, he said.

Major growth projects valued at up to US$25 billion offer potential average returns of over 16 per cent at consensus prices.

Technology programs to improve safety, lower costs and unlock resource with an unrisked value of up to US$12 billion are among the most capital efficient options in the portfolio. While Elliott showed that BHP has invested $8 billion in petroleum exploration since 2002, and with little to nearly no return, one unfortunate reality may simply be that BHP can not cost-effectively break all of the assets out with the current energy market prices.

It instead said BHP's management should work harder to find a solution to the legacy structure, which it said is obsolete and creates a long-running mismatch between the two shares.

BHP advanced 0.7 percent to close at 1,199 pence in London on Tuesday.

A number of equities analysts have recently commented on BBL shares.

Related news:

Hot News

isis-killer-beheading-video-story-top Tottenham's Alli plans to continue enjoying 'journey'
May 18, 2017 - 01:05
We have definitely improved on previous year but after the game against West Ham, everything before gets forgotten. This is a very good thing for us.

Google To Reveal Standalone Daydream VR Headset At Google I/O?
May 18, 2017 - 01:00
So why is everything so worked up about mere VR headsets? The devices will also use what Bavor called "precise tracking". Virtual reality immerses users in an artificial world and initially has been taken up most actively for gaming.

isis-killer-beheading-video-story-top ESPN Brings out Serena Williams, Paul Pierce to Showcase 'SportsCenter' Changes
May 18, 2017 - 00:43
He joined ESPN in November 1997 as an anchor for ESPNEWS and has served as host of NFL Live since its inception in 2003. That time slot opened up when ESPN promoted "His & Hers" co-hosts Michael Smith and Jemele Hill left to lead the 6 p.m.

isis-killer-beheading-video-story-top Armed Robbers Reportedly Steal $1 Million From A$AP Rocky's Home
May 18, 2017 - 00:37
As for who might be behind the robbery, sources tell TMZ it doesn't appear to be a random act. That's when she was confronted by three suspects - one of them was armed with a handgun.

isis-killer-beheading-video-story-top Erdogan hopeful for breakthrough in dispute on arming Kurds
May 17, 2017 - 02:31
The prime minister, Binali Yıldırım, sounded more realistic when he stated that Turkey can not possibly declare war on the U.S. Share with Us - We'd love to hear eyewitness accounts, the history behind an article, and smart, constructive criticism.

Transfer Focus: Manchester City Zabaleta announcement opens door for Bilic
May 17, 2017 - 01:41
Pep Guardiola has called on fans to roar Manchester City into the Champions League and give Pablo Zabaleta a fitting send-off. Hal Robson-Kanu will have his hamstring problem assessed but Matty Phillips will remain sidelined by his hamstring issue.

Apple Updates macOS, iOS, watchOS and tvOS
May 17, 2017 - 01:35
Apple fixed 66 vulnerabilities across seven product lines, including Safari, iTunes, macOS, and iOS, on Monday. Both updates focus on bug fixes and security improvements and not new features.

Plane with New York CEO, 3 others, missing in Bahamas
May 17, 2017 - 01:34
Blumin owned the plane through a consulting company she owned, according to New York State and aviation records. A Coast Guard Air Station Clearwater C-130 Hercules airplane crew searched Monday for the overdue plane.

isis-killer-beheading-video-story-top Trump administration to cut funds for abortion aid overseas
May 17, 2017 - 01:32
Among the largest groups to face defunding is the UN Population Fund (UNFPA), which operates in more than 150 different countries. Typically, the Mexico City Policy has only impacted funds specifically earmarked for family planning programs.

isis-killer-beheading-video-story-top Logan gets black-and-white trailer for Noir release
May 17, 2017 - 01:28
Talking to EW during the Logan cover story, Jackman shared how nervous he was about structuring the movie around a child actor. It's also important to note that in this scene she was improvising. "I went home and I had bruises all over my arm".

isis-killer-beheading-video-story-top Jimmy Kimmel to return as host of 90th Oscars
May 17, 2017 - 01:28
The 90th Academy Awards will air live on the abc television network and broadcast outlets worldwide on March 4, next year. The Academy of Motion Picture Arts and Sciences took to Twitter on Tuesday to share the big news.

isis-killer-beheading-video-story-top Netflix Turns Into Google's Agent To Stop Rooting
May 17, 2017 - 01:27
Netflix has disabled its Android app through the Google Play app store on rooted Android phones, Android Police reports. Netflix said the version 5.0 upgrade was created to prevent piracy, and that the change is about copy protection.

isis-killer-beheading-video-story-top HTC unveils new flagship device U11 globally
May 17, 2017 - 01:17
HTC U 11 will be available in five colour options - fantastic silver, sapphire blue, brilliant black, ice white and solar red. The HTC U Ultra comes in dual SIM and single SIM versions with both operating on 850/900/1800/1900MHz GSM/GPRS/EDGE networks.

isis-killer-beheading-video-story-top Instagram brings a new Face Filter feature to its App
May 17, 2017 - 01:15
With the eraser brush users can erase things they've drawn and replace it with something else, or play around with color. After taking a photo or video, users can select a drawing tool and tap and hold to fill the entire screen with color.

isis-killer-beheading-video-story-top The side of McKayla Maroney you haven't seen before
May 17, 2017 - 01:10
Maroney, 21, won the silver medal at the 2012 Summer Olympics for the vault and the gold medal in the team competition. Maroney didn't address the butt implant rumors, but it wasn't the first time she was accused of altering her body.