bhp going for bg ??

11-2-10
Madeleine Heffernan
BREAKFAST
BHP Billiton

Theres no big takeover in the works, said BHP Billiton chief Marius Kloppers, after the mining giant unveiled a better-than-expected result yesterday. Despite UK rumours that natural gas giant BG Group or a touted Canadian potash business could be within BHPs sight, Kloppers says the dual-listed miner is focused on long-term growth rather than M&A. (Citigroup has estimated a BG deal would be valued at $US80 billion, and would need to be at least 40 per cent debt-funded to increase BHPs earnings, Bloomberg reports). Recent talk of a buyback also failed to deliver yesterday. While a big ticket item is more exciting, others say smaller opportunistic acquisitions are more likely, as the company remains cautious on global economic conditions and continues its enormous capital expenditure growth program. Still, big, long-life and low-cost assets with expansion potential would be considered, Kloppers said.