US activist Elliott under attack as BHP Billiton and AkzoNobel return fire

BHP Billiton returned US hedge fund Elliott’s fire today saying demands for a shake-up at the miner were “not new”.

The world’s biggest miner is under pressure to sell its US oil business and overhaul its structure for tax benefits.

But BHP said: “We have assessed the options in detail many times over the past years”, adding that Elliott’s plan “materially overstates the potential value that could be created”.

“We are confident we have everything in place to increase returns and grow shareholder value,” BHP’s UK-born chief executive Andrew Mackenzie said.

Elliott said a single tax structure in Australia would free cash but BHP said it would “destroy $1.3 billion” value.

Meanwhile, Elliott was reported to the Dutch stock market regulator by Dulux owner AkzoNobel today over allegations the activist investor potentially shared “price-sensitive information” with takeover suitor PPG.

The paints giant said Elliott planned to privately tell PPG, which is trying to buy Akzo, about an emergency shareholder vote it has requested to kick out chairman Antony Burgmans before the rest of the market knew.

It said: "AkzoNobel became aware on April 11, 2017 that Elliott Advisors intended to privately share potentially price sensitive information with PPG about its decision to request an EGM.

"AkzoNobel has shared this information with the Dutch Authority for the Financial Markets (AFM) and calls on Elliott Advisors and PPG to clarify their relationship and the history of the communications between the two companies."

Elliott said:. "PPG has met and communicated with Akzo Nobel’s top 20 shareholders; as one of the top 20 shareholders of Akzo Nobel, Elliott has therefore, as a matter of course, met and communicated with PPG," it said.