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BHP Urged to Review Its Dual HQ Structure

  • Restructure may see more efficient use of tax credits: RBC
  • BHP CEO said earlier cost of overhaul would outweigh benefits
BHP Billiton Ltd. Chief Executive Officer Andrew Mackenzie Attends Investor Briefing For Interim Results

Photographer: Carla Gottgens/Bloomberg

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Activist investor Elliott Management Corp. has called on BHP Billiton Ltd. to immediately review its dual structure after commissioning research that argues reorganizing as a single company in Australia would add more than $22 billion in value to the miner’s shareholders.

Creating a unified company, headquartered and incorporated in Australia, with a primary listing in that country and additional listings elsewhere, would cost $391 million, according to the report by FTI Consulting Inc. BHP is the world’s biggest miner and currently operates as two entities based in Melbourne and London.