April 12 (Reuters) - BHP Billiton (LON:BLT) Ltd BHP.AX :
* BHP Billiton review of Elliott proposal
* "Elliott's proposals are not new to BHP Billiton"
* "Believe that Elliott materially overstates potential value that could be created by its proposals"
* Board, management concluded that costs and associated disadvantages of each element of Elliott's proposal would significantly outweigh potential benefits
* Unifying DLC structure in manner proposed by Elliott could destroy at least US$1.3 billion in value to save less than US$2.5 million a year
* Petroleum remains core to BHP Billiton strategy and has potential to create significant long term value at high returns
* "View is that petroleum business as a part of BHP Billiton portfolio currently offers more value to shareholders than if it were a separate entity"
* After assessing proposal, we have not identified any material or broader strategic benefits from unification in manner proposed by Elliott
* Shareholders would face downside risk if new London listed shares by Elliott's proposal were to trade at blended price of existing BHP Billiton PLC & BHP Billiton Ltd shares
* South African shareholders would face risk as they would not obtain capital gains tax roll-over relief and might need to pay tax under Elliott's proposal
* "Expects that shareholders will benefit from realization of high returning growth options in BHP Billiton's US petroleum business"
* NYSE listing (of US petroleum assets as proposed by Elliott) would not suit all current BHP Billiton shareholders Source text for Eikon: ID:nASX78B6Cl Further company coverage: BHP.AX