Elliott urges BHP to reconsider rejection of its overhaul plan

|About: BHP Billiton Limited (BHP)|By:, SA News Editor

Elliott Management says BHP Billiton (BHP -0.2%) was too quick to reject its proposal and should reconsider its suggestions for restructuring the company.

Elliott says it had considered earlier meetings with BHP's management to be "constructive" and that the company should broaden the discussion to include all shareholders.

Brenton Saunders, portfolio manager for BT Investment Management in Sydney, says he supports the idea of selling BHP's onshore U.S. oil assets, but that while the approach from Elliott would prompt management to reassess its strategy, the hedge fund was unlikely to be able to force its plan through.

Meanwhile, the Australian government says any significant changes to BHP's corporate structure must be consistent with a "national interest" test under the law.