BHP Says Costs of Elliott Proposals Outweigh Benefits

BHP has responded to Elliott's proposal, stating that the costs and risks outweigh the benefits. Elliott has proposed unwinding BHP's dual-listed structure, demerging the oil and gas business, and increasing capital returns. The potential spin-off of BHP's $22 billion oil and gas assets is a key point, as BHP is heavily invested in US shale. The timing of such a move is questioned due to low oil prices. Investors have criticized BHP for its oil and gas arm, and Elliott's proposal revisits this issue. The outcome may depend on whether other investors support Elliott.

What is one of the main proposals Elliott has made to BHP?

• Expand into renewable energy

• Increase investment in US shale assets

• Unwind BHP's dual-listed structure

• Merge with another mining company

Why is the proposed spin-off of BHP's oil and gas business significant?

• It is valued at $50 billion

• It would lead to a merger with Elliott

• BHP has no other major investments

• BHP is heavily invested in US shale assets

What is a potential concern for investors regarding the spin-off of BHP's oil and gas business?

• High oil prices

• Increased competition in the mining sector

• Lack of interest from other companies

• Low margin of US onshore production

What has been a recurring criticism of BHP by investors?

• Not expanding into new markets

• Reducing its iron ore production

• Holding onto its oil and gas business

• Lack of investment in renewable energy

What is a critical aspect of the situation between BHP and Elliott?

• Elliott's merger with another company

• BHP's investment in renewable energy

• Elliott's support from other investors

• BHP's expansion into new markets