BHP exploring options for controversial US shale unit, CEO tells investors
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BHP Billiton Ltd is assuring shareholders that it's exploring numerous options for its contentious US shale unit amid pressure from activist investor Elliott Management Corp to carry out a wider review of petroleum operations.
In a series of meetings in Australia last week, chief executive officer Andrew Mackenzie stressed to shareholders that the biggest mining company is open to selling parts of the onshore portfolio. Billionaire Paul Singer's Elliott wants an independent review of BHP's oil unit and claims the miner has destroyed about US$31 billion in value through its foray into US shale and failed petroleum exploration. Mr Mackenzie's message to investors on shale is "they want to try and extract maximum value out of the business and there's a lot of different options", said Andy Forster, a Sydney-based senior investment officer at Argo Investments Ltd, which owns BHP shares, and who attended a meeting.
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