BHP Billiton denies that they are buying Woodside

BHP Billiton have sort of thrown water on a Woodside Petroleum bid. In fact the plot thickens as the Shake My Head, I mean Sydney Morning Herald reports that the Western Australian premier, Colin Barnett, is long Woodside Petroleum aware of talks between the two parties. And is happy if BHP Billiton takes the 24 percent Shell stake, but not the whole company. Check it out ---> Barnett says he was 'aware' of BHP-Woodside talks.

Bloomberg are reporting, although from earlier this morning, Woodside Shares Rise on Speculation BHP Billiton Will Make a Takeover Bid. Seems plausible in theory, but a little late not so?

In fact BHP Billiton have said that they are NOT going down this path. So Woodside plunged midday in trade and then closed in the green. Wow. And BHP Billiton rallied over three percent in Aussie as they flat denied "it". All rather strange that the premier would say one thing and the company says another. In short, ignore until you get something concrete.

BHP Billiton have also announced this morning the end of this round of off market share buy backs. In short, 4.4 percent of shares bought back, at a 14 percent discount to the market price. In US Dollar terms we are now nearly 80 percent of the way through the entire program, 2.2 billion left to buy back in what is left of the year, nearly three quarters. All these off market buybacks were done down under in Aussie Dollars, and the company is able to fulfil two things in that geography. Why not a dividend then? Because down under this is a better utilisation of their excess cash resources. I do not mind to be honest, as long as the shares are taken out of circulation. That, my friends, is a better question to be asking, are they going to sit and act as part of remuneration over time, or taken and retired.