Toys 'R' Us liquidation plan faces opposition from dozens of toy suppliers
Volkswagen showing '5-passenger Atlas' concept in NY
Alibaba to invest extra $2.63 billion in Lazada Group
Bangladesh beat SL in drama-filled match, face India in final
Middle school students hold walkout in response to Parkland shooting
Elliott Responds To BHP's Approach
17 May 2017, 02:21 | Frank Carlson
Zacks Investment Research lowered shares of BHP Billiton plc from a buy rating to a hold rating in a report released on Friday April 14th
Elliott also said it had seen a significant groundswell of dissatisfaction among BHP shareholders because of the company's chronic underperformance, and accused its board of not being open to suggestions and misleading in its response to the original proposals.
Elliott had originally suggested BHP should demerge its entire USA petroleum division, but indicated on Tuesday it was open to other ways of fixing the petroleum division, and said it now believed an independent review of the petroleum business was warranted.
BHP Billiton chief executive Andrew Mackenzie believes his strategy to reduce costs and unlock latent growth can grow the company by a further 50 per cent, despite the increasingly nasty campaign run against it by activist investor Elliott Associates.
"In launching Think Big, we will take the opportunity to change our logo and move to a brand that Australians have known us by for generations - BHP", the firm said.
"Our path is deliberate, with value and returns at the centre of everything we do", Mackenzie said.
The investor blamed BHP's US$23bn venture into the U.S. onshore oil and gas sector, the US$8bn spent on petroleum exploration with no apparent value created and about US$9bn poured into share buybacks at inflated prices.
In analysis released today, Elliott says total shareholder returns at BHP have substantially underperformed Rio Tinto as well as the ASX200, the FTSE 100 and the S&P 500 over the year to date and for every year of the last eight years. The 1 year high for the stock price is 1518.5 GBX while the 52 week low is 786.4 GBX. The unit is worth about $22.5 billion, according to Deutsche Bank AG.
It also backtracked on its proposal for BHP to have its main listing in London following opposition from the Australian government.
An example would be International Consolidated Airline Group IAG.L, which resulted from the 2010 merger of British Airways and Iberia.
"Our assessment is that the tax benefits and the aggressive marketing margins which BHP was seeking in using this structure are unsustainable".
BHP shares are up 0.4% this morning.
Its share price has fallen since Elliott announced its overhaul proposals last month and the London stock is down almost 9 percent since the start of the year.
BHP has cut costs, invested in major growth projects, and has options to increase production capacity across its portfolio, Mr Mackenzie said.
"What this shows is that Elliott aren't fly-by-night, they are clearly sticking around", said Andy Forster, senior investment officer at Argo Investments Ltd., which manages more than A$5 billion ($3.7 billion) and holds BHP's Sydney-listed shares.
See First Official Trailer For FOX Marvel Series 'The Gifted'
So it isn't like we're exactly left wanting for more, so what is it that is going to help The Gifted stand out from the crowd. Their father, played by True Blood star Stephen Moyer , works for the government and is responsible for rounding up mutants.
Ajax withstands Lyon comeback to reach Europa League final
It was made even more intense when Ajax center back Nick Viergever was shown a second yellow card and sent off in the 84th minute. Lyon got on the scoreboard after the Ajax defender headed a cross right to Mathieu Valbuena who scored an important away goal.
Yankees put Chapman on DL with rotator cuff inflammation
Chapman told the Yankees he had a similar condition in 2012 when he pitched for the Reds, sources told ESPN's Buster Olney. The Yankees also recalled right-hander Chad Green from Triple-A Scranton/Wilkes-Barre prior to Sunday's doubleheader.
Veteran journalist Javier Valdez killed in Mexico's Sinaloa
News of his slaying shook Mexico's journalism community, already alarmed by a spike in attacks against the media this year. In 2011, the Committee to Project Journalists chose Valdez as the recipient for its International Press Freedom Award .
Retail inflation decelerates to 2.99% as food prices plunge
Overall food inflation, or the rate of price increase, for April was at 0.61 per cent as against 1.93 per cent previously. As per the last data, IIP for the month of February fell by 1.2% on year-on-year basis, as against the estimate of 1.3%.