unique process of value building..., page-34

"I've read that if they get RIO they'll need to, as oil will be a diluted part of their business due to all the metals that'll be added"

1) A lot of analysts actually expect BHP to divest and sell its entire Petroleum business -> to free up cash and strengthen balance sheet for any TO.

I think they will keep it though. But just continue to focus on American/Gulf of Mexico assets.

2) Your point is valid. Diversification across assets reduces risk profile. Thus lowers Beta and enables access to cheaper debt throughout debt markets.

But an $80mn company will do very little for BHP's Beta. lol. If this were a valid priority for BHP head office, they'd target billion dollar bolt-on's.



Raks: Cameroon/Angola...same thing...lol...well not really, but it doesnt change much. Angola is more politically stable however. So ill pay that.


Cheers!