Bil cancels all its own shares!

[MichaelR]

What does this mean in regards to my share in Bill s value? BHP Billiton Plc announces that, further to the resolution approved at the AGM held on 26 October 2006 relating to the reduction of share capital in BHP Billiton Plc by the cancellation of all the shares held by BHP Billiton Limited on 15 November 2007, 24,522,510 ordinary shares of BHP Billiton Plc were cancelled on 6 December 2007 and a sum of US$12,261,255 being equal to the reduction in share capital, was transferred to a special reserve. The total number of shares cancelled under the authorities granted at the AGM currently amounts to 211,510,450. Following the above transaction, BHP Billiton Plc holds 24,165,516 of its ordinary shares as treasury shares and BHP Billiton Limited holds 19,060,350 of the ordinary shares in BHP Billiton Plc, for a total of 43,225,866 shares. The total number of BHP Billiton Plc ordinary shares in issue (excluding shares held as treasury shares and shares held by BHP Billiton Limited) is 2,213,410,686 Further information on BHP Billiton can be found on our Internet site: www.bhpbilliton.com

[MichaelR]

Will this move on Bhp s part increase or decrease the share value is what I wanted to know?

[Preston]

Excellent question. Extremely high level explanation Shares that is bought, was previously bought by a Special Purpose entity (i.e seperate vehicle entity for BIL). Those shares that is bought from shares buyback is removed from issue share capital and is then allocated to authorised but unissued share capital. By cancelling those share, BIL authorised share capital will now be reduced by those cancelled share. Should BIL wants to re-issue those share at a later stage, they need to be done via special resolution.. Effect of this Less share in market, therefore supply is less and price will increase. Please excuse spelling cos i am a C.A not an author.

[CrownA]

Does this mean that BIL are giving up on Rio Deal? Will this be good for BIL share price or not?

[Preston]

Bil share price should increase because of this cancellation of share. Rio Tinto deal , very uncertain at this stage.

[Project_Directo]

Presto, I would believe that Maneer Kloppers is working to a time line in respect of the deal, he clearly wants to be consultative in terms of good governance practise but their will be a line plotted in their strategy to which he will have to implement a change of tack. This could be a better offer to the common holders of the firms or more leverage on RIO s management to get their toes under the table, which would be a sounder way forward.imo.

[#7]

I think BIL is ready to break out of it's bearish flag pattern for a retest of 204/206. Then up I think...?

[MichaelR]

in excately 7 working days?omo or surf?

[Project_Directo]

the volume is so low at the moment but well as long as we get 300 by end Jan08 i really dont give a monkeys!! 230mill today hell it was 1.5bill a few weeks ago.