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BHP defends premium paid for Billiton
BHP CE Paul Anderson said that the $2bn premium paid for Billiton was less than would have been paid out in a hostile take-over. He went on to applaud the credentials of Brian Gilbertson and quelled fears that the company would immediately move its headquarters to the UK saying that it would remain in Melbourne for at lease five years.
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Billiton/BHP merger could aid copper market
The proposed merger between Billiton and BHP could, according to analysts, be of some benefit to the copper market as an entity of that size could quickly control supply in times of surplus. Further speculation extends to the consolidation of the entire industry into a few top-tier companies with some of the smaller companies merging to compete with the likes of Billiton/BHP.
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Alcan denies counter-bid for Billiton
The world's second largest aluminium group -- Alcan -- said that it was surprised to hear of rumours of a take-over bid for Billiton. They declined to confirm or deny the rumours of a bid which could mean the end of Billiton's proposed merger with BHP. Market talk is that Alcan an Billiton were in merger talks just a couple of days before the Billiton/BHP announcement. Billiton had no comment on reports of the talks.
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Billiton combines chrome and nickel divisions
The group has decided to group its chrome and nickel interests under chief executive officer -- Chris Pointon -- in an effort to achieve greater market focus. It is thought that the new stainless steel raw materials business will "give the company a unique edge in the business". Jimmy Wilson of the group's Bayside aluminium smelter will take over the role of COO with marketing being the responsibility of Chris Campbell. Kobus van Dyk, current CEO of Billiton's chrome business has resigned.
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Billiton shares rise 15% on news of merger
Billiton's share price rose 15% following news of its merger with Australia's BHP. Analysts were in favour of the deal but said that the companies would now have to prove that the merger was not one of desperation but would enhance shareholder value. The Industrial Development Corporation, an 8% shareholder of Billiton, has voiced its support for the proposal.
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Billiton merges with BHP
Billiton and BHP are to merge their interests to form the world's second largest mining company with a market capitalisation of US$28bn. The merged entity will be known as BHP Billiton and generate sales of around GBP 14bn. Headquartered in Australia, with a corporate management centre in London, BHP will hold 60% of the group and head it up with Paul Anderson as CEO. Billiton's Brian Gilbertson will hold a senior position on the board and in all likelihood succeed Anderson in a few years. Market speculation extends to a takeover of Billiton by Anglo American which already holds 7% of the company. The merger will create a group with interests in manganese, iron ore, aluminium, coal, petroleum, base metals and titanium minerals. It will also facilitate the primary listing of BHP in London. The group will maintain a secondary listing in Johannesburg with an American Depository Receipt listing on the New York Stock Exchange. The question of price is interesting with thought that a paper merger would be agreed upon. A cash input from BHP into Billiton may also be considered.
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DTI says Billiton is charging excessive prices
The department of trade and industry said that Billiton was scaring off potential investors in the car component sector by charging excessive prices for aluminium billets. The prospective investors were from Italy, Germany and Japan. Billiton rejected the departments accusations saying that rebates were offered to clients who bought aluminium for local benefication. The department had granted benefits to Billiton (by way of reduced electricity prices) for the development of the group's Hillside smelter and said that nearly all the output was exported with a minimal amount being processed further in the local market. Billiton however said that the benefits awarded to the group were meant to encourage exports which was what the company had achieved.
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Billiton acquires Australian nickel project
Wholly owned subsidiary, QNI Western Australia (Pty) Ltd, has acquired the remaining 50% of the Ravensthorpe Nickel Project in Western Australia from Comet for A$28m plus the cancellation of its 19.9% interest in Comet. Conclusion of the deal, which remains subject to shareholder approval, will result in Billiton holding 100% of the project. Once operational, the plant will produce a nickel/cobalt hydroxide intermediate product to be shipped out for refining.
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Billiton may move manganese production
High transport costs( from Spoornet) may encourage the Billiton group to move its manganese production to Australia. Local logistics costs account for around 30% of total costs. In Tasmania, the cost of transport is $3 per ton, in SA it's $28 per ton. Restructuring of the manganese operations has already resulted in the closure of seven small loss making furnaces and increased downstream benefication. Closure of the entire operation would result in job losses of around 3 000 as well as lost income for Eskom.
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Billiton director resigns
Mr Steve Kesler resigned as an executive director of the group with effect from 5 Mar 01. Mr Mike Parrett, formerly of Rio Algom, Ltd has been appointed as acting chief executive of Billiton Base Metals .
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| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
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