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UPDATE 1-BHP investor Tribeca calls for sale of U.S. shale assets, board shake-up

Published 05/05/2017, 09:35 am
Updated 05/05/2017, 09:40 am
© Reuters.  UPDATE 1-BHP investor Tribeca calls for sale of U.S. shale assets, board shake-up
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* Tribeca says BHP could fetch $10 bln for shale assets

* Fund slams BHP's acquisition track record

* Fund calls for BHP to expand in battery materials (Adds no comment from BHP, Tribeca comments on energy, board)

SYDNEY/MELBOURNE, May 5 (Reuters) - A second BHP Billiton (LON:BLT) Ltd BHP.AX BHP.L shareholder has made a public push for strategic changes at the world's largest miner, with Sydney-based Tribeca Global Natural Resources Fund pressing the company to sell its U.S. shale assets and overhaul its board and senior management.

U.S. activist hedge fund Elliott Management last month went public with a plan urging BHP to unlock value by scrapping its dual-corporate structure, demerging its entire U.S. oil business, and modifying its capital return policy. Elliott plan was rejected by BHP's board. It has received a generally tepid reaction from shareholders, and Australian Treasurer Scott Morrison on Thursday said he would not allow BHP to move its primary listing to London as Elliott had proposed. a letter sent to its investors on Thursday titled "Making BHP Great Again", Tribeca said BHP should maintain its current dual-listed structure but consider selling its U.S. shale assets.

"Having assessed several recent transactions, we believe that BHP could realise approximately $10 billion from the asset sales," Tribeca said.

BHP had no immediate comment on Tribeca's letter.

BHP said on April 26 it would pursue the sale of some, but not all, of its onshore U.S. oil and gas assets. also called for BHP to review its board and management in light of the planned retirement of long-serving Chairman Jac Nasser this year.

"This provides a critical opportunity to reset the culture to one that covets capital efficiency and (earnings) growth and we hold high hopes that this opportunity will not be wasted," Tribeca said.

It criticised the board for having overseen the destruction of $30 billion in shareholder capital over the past several years with its shale acquisitions, failed acquisitions and investment in potash.

On the energy front, Tribeca called for BHP to position itself for long term changes in energy markets by expanding in materials used in making batteries such as lithium, graphite and cobalt.

Tribeca declined to say how big a stake it has in the company, but it holds both Australian and UK-listed shares. It is not among the top 20 shareholders, according to Thomson Reuters data.

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