Tribeca joins Elliott in calling for changes to BHP Billiton's structure and management

 
Courtney Goldsmith
Follow Courtney
BHP Billiton Announces Record Financial Results
This is the second shareholder to publicly call for a company shake-up (Source: Getty)

BHP Billiton faces another shareholder revolt as Sydney-based Tribeca Investment Partners calls on the miner to ditch its US shale assets and lose its chief executive.

The Aussie hedge fund follows US activist investor Elliott Advisors' calls last month for the company to exit its shale business to free up capital.

BHP called Elliott's claims that it could unlock up to $46bn (£35.5bn) in shareholder value by unifying its dual listing structure, spinning off its US oil arm and revising its capital return policy overstated.

Tribeca sent a letter to BHP investors yesterday titled "Make BHP Great Again", according to Reuters. In it, the firm called for a sale of the mining giant's shale assets, return of capital and a board and management overhaul.

"We fear elements of the existing path could leave the company susceptible to ongoing underpeformance and may ultimately result in this once great global mining force being considerably diminished," Tribeca said in the letter.

Tribeca also called for BHP to shake up its board ahead of the retirement of chairman Jac Nasser. James Eginton, Tribeca's global natural resources fund analyst, added BHP should dump chief executive Andrew Mackenzie.

Tribeca, which has about $2.5bn Australian dollars (£1.4bn) in funds in management, didn't tell Reuters how big a stake it has in the miner. It is not among the top 20 shareholders, according to Thomson Reuters data.

BHP did not have an immediate response to the letter.

Read more: BHP cuts copper and coking coal guidance and points to sale of US gas field

Related articles