bhp shares slump in australia after demerger plans
Last Updated : GMT 03:54:18
Arab Today, arab today
Arab Today, arab today

BHP shares slump in Australia after demerger plans

Arab Today, arab today

Arab Today, arab today BHP shares slump in Australia after demerger plans

BHP Billiton's shares have tumbled in Australia
Sydney - AFP

BHP Billiton's shares tumbled in Australia Wednesday as investors showed their disappointment with the lack of a share buyback and concerns over the global mining giant's demerger plans, analysts said.
The stock slumped around four percent in morning trade, with the sell-off following a similar scenario in London, where the firm is also listed.
It follows the world's biggest miner on Tuesday reporting weaker-than-expected underlying earnings of US$13.4 billion and a net profit of US$13.8 billion.
BHP also outlined a proposal to create a new independent company by demerging non-core assets, including some of its aluminium, coal, manganese, nickel and silver operations.
The Anglo-Australian resource major also failed to announce the US$3.0 billion share buyback that some analysts had been expecting.
Combined, the news sent the stock down 4.08 percent to Aus$38.06 around mid-day on the Australian stock exchange.
CLSA resources analyst David Radclyffe said the decline could reflect disquiet from BHP's British shareholders, some of whom would not be able to hold stock in the new company due to overseas investment restrictions.
"We're in favour of the deal, but I can understand why the Plc shareholders feel a little bit left out," Radclyffe told AFP, referring to BHP's British listed shareholders.
The new entity, to be named NewCo, will only be listed in Australia, not London, with a secondary listing in Johannesburg.
"The market seems to be pricing in a little bit of disappointment from them today, probably a little bit more than warranted," added Radclyffe.
"In saying that, the stock was trading at a three-year high, so a little bit of profit-taking -- given that there was nothing additional in the result to keep that momentum -- is probably not too surprising."
BHP Billiton chief executive Andrew Mackenzie told reporters he did not believe the sell-off in London was a rejection of the demerger option, instead pointing to the absence of a share buyback and the complex nature of the proposal.
"No, I don't think so," he was quoted as saying by Fairfax Media when asked if the falling share price was a sign the demerger was unpopular.
"We've had a number of pre-announcements of this over time and those were very much related to an outline of this transaction."
Mackenzie noted that the absence of a share buyback could be a possible factor.
"Expectations for (a) large capital management event were playing in peoples' minds," he said.
IG Markets strategist Stan Shamu said in a capital-focused market environment, the lack of a share buyback weighed on shareholders.
"Investors were hoping for a buyback to the tune of US$3 billion, and in a capital-focused market this wasn't taken well," Shamu said.
"Additionally debt levels are quite high and the company feels it needs to strengthen the balance sheet before committing to a buyback."
Shamu added that near-term uncertainty over the new entity could also mean there would not be a capital return to investors for some time.
By spinning off some assets into a new company, BHP said its business would beable to focus more intensively on its core long-life operations -- iron ore, copper, petroleum, coal and potash.
NewCo is expected to list in the first half of the 2015 calendar year.

 

arabstoday
arabstoday

GMT 03:39 2017 Friday ,24 November

European markets wobble amid US Thanksgiving holiday

GMT 22:09 2017 Thursday ,23 November

Bahrain Bourse daily trading performance

GMT 02:02 2017 Thursday ,23 November

Asian markets rally after Wall St lead, euro struggles

GMT 22:40 2017 Wednesday ,22 November

Bahrain Bourse daily trading performance

GMT 11:50 2017 Tuesday ,21 November

European stocks shrug off Germany's political woes

GMT 03:59 2017 Tuesday ,21 November

Weekly inflation decreases by 0.88%

GMT 23:50 2017 Monday ,20 November

Bahrain Bourse daily trading performance

GMT 14:54 2017 Sunday ,19 November

Bahrain Bourse daily trading performance
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bhp shares slump in australia after demerger plans bhp shares slump in australia after demerger plans

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bhp shares slump in australia after demerger plans bhp shares slump in australia after demerger plans

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today PNG police start removing refugees

GMT 03:00 2017 Friday ,24 November

PNG police start removing refugees
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria congress to go ahead

GMT 02:24 2017 Friday ,24 November

Syria congress to go ahead
Arab Today, arab today IS media offline for a day

GMT 02:10 2017 Friday ,24 November

IS media offline for a day
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today British woman jailed in Iran to appear

GMT 03:19 2017 Friday ,24 November

British woman jailed in Iran to appear
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mitsubishi Materials units falsified product

GMT 03:24 2017 Friday ,24 November

Mitsubishi Materials units falsified product
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 10:43 2017 Wednesday ,22 November

Cigar-shaped asteroid came

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday