Watch Out BHP! This Activist Investor Wants to Shake Up Your Board
Tribeca Investments Partners, one of the activist investors calling for a sweeping overhaul at BHP Billiton (BHP.AU), is looking to shake up the Australian mining company's board of directors, reports the Wall Street Journal.
The WSJ's Robb Stewart quotes Tribeca as saying the Sydney-based hedge fund is holding private talks with a number of people as it believes a majority of BHP's 11-person board oversaw some of the mining and energy giant's missteps in recent years but haven't been held responsible. Tribeca is also looking to have more people with mining and technical skills on the resources giant's board.
Tribeca joined Elliott Management last month in criticizing BHP for destroying shareholder value and calling for the mining giant to sell its U.S. offshore oil and gas assets. They argue the $10 billion that could be raised from the asset sale should be used to return capital to investors and invest in growth projects.
BHP shares are down 7% this year and have slumped 37% from their levels in 2014. The miner abandoned its policy of maintaining a stable dividend payout last February and cut both interim and final dividends for fiscal 2016.