Activist shareholder Elliott Management called on BHP Billiton Ltd. (NYSE: BHP) on June 14 to "upgrade" its board of directors as the company prepares to select a new chairman this week.
"BHP has an entrenched board, with long-tenured directors having approved the disastrous acquisitions and poorly timed share buybacks that are at the root of much of today's underperformance," Elliott said in a statement.
"A significant upgrade in directors is needed."
UPDATE: BHP Billiton Names Ken MacKenzie As New Chairman
Elliott, a New York-based fund that has built up a 4.1% stake in BHP, has maintained a barrage of criticism of the global miner since releasing a list of changes it wants at the company, including an exit from its U.S. oil shale business.
BHP's board of directors is currently meeting in Chile, home to the company's vast copper mining business, where it is expected to select a new chairman.
RELATED:
BHP Resists Call To Ditch Eagle Ford Shale, Permian Oil
BHP Billiton's Fayetteville Shale Gas Assets For Sale
Australian wealth management group Escala and fund Tribeca Investment Partners have also campaigned for a revamp at the company, with calls for board changes and reviews of the energy divisions.
In a note last week, AMP Capital, one of BHP's largest shareholders, called on the miner to conduct an "independent assessment" of Elliott's proposal to unify BHP's dual-listed company structure and to "prove the worth of its U.S. onshore business and why it is compatible in the BHP portfolio."
BHP was not immediately available to comment.
Recommended Reading
E&P Highlights: Feb. 26, 2024
2024-02-26 - Here’s a roundup of the latest E&P headlines, including interest in some projects changing hands and new contract awards.
Exxon Mobil Green-lights $12.7B Whiptail Project Offshore Guyana
2024-04-12 - Exxon Mobil’s sixth development in the Stabroek Block will add 250,000 bbl/d capacity when it starts production in 2027.
Exxon Ups Mammoth Offshore Guyana Production by Another 100,000 bbl/d
2024-04-15 - Exxon Mobil, which took a final investment decision on its Whiptail development on April 12, now estimates its six offshore Guyana projects will average gross production of 1.3 MMbbl/d by 2027.
CEO: Continental Adds Midland Basin Acreage, Explores Woodford, Barnett
2024-04-11 - Continental Resources is adding leases in Midland and Ector counties, Texas, as the private E&P hunts for drilling locations to explore. Continental is also testing deeper Barnett and Woodford intervals across its Permian footprint, CEO Doug Lawler said in an exclusive interview.
For Sale, Again: Oily Northern Midland’s HighPeak Energy
2024-03-08 - The E&P is looking to hitch a ride on heated, renewed Permian Basin M&A.