Retail shareholders back Elliott’s push to reform BHP Billiton

Elliott Management appears to be gaining traction among Australian retail shareholders in its push to restructure BHP.

Nearly half of surveyed retail shareholders thought BHP Billiton needed change.

New York hedge fund Elliott Management appears to be gaining traction among Australian retail shareholders in its push to restructure BHP, with a survey by the Melbourne Institute and proxy adviser Global Proxy Solicitation finding nearly half of respondents were keen for change at the miner.

In the pair’s annual Shareholder Confidence Index survey of 1600 retail shareholders, respondents were asked specific questions on Elliott’s push to abandon BHP’s Australia-London dual listing and spin off US petroleum assets.

Nearly half of those surveyed agreed changes were needed to unlock value at BHP.

“We’re seeing a clear turning point in the attitude of retail shareholders who are usually very loyal to an incumbent board and cynical of the motives of foreign activists,” GPS director Andrew Thain said.

“At this early stage of the process the survey result indicates that retail shareholders are prepared to give Elliott a hearing.”

Asked whether shareholders agreed with Elliott’s view that major changes to BHP’s operations and structure were warranted, 47.86 per cent of shareholders surveyed responded “yes”, 15.33 per cent responded “no” and 36.81 per cent were uncertain.

Asked whether BHP chief executive Andrew Mackenzie had effectively handled Elliott’s approach, 36.39 per cent said “yes”, 17.93 per cent said “no” and 45.68 per cent were uncertain.