BHP Billiton tipped to launch $35 Billion Dollar takeover bid for Woodside after shares dive

Woodside CEO Peter Coleman has cleared the deck by revealing cost blowouts at the Pluto project. Photo by: Nirme Marie

BHP Billiton may be preparing to launch a $35 billion takeover bid for Woodside Petroleum after shares in the Perth-based explorer closed below $40 for the first time in 10 months, as investors continued to react to last week's shock cost blowouts at the Pluto LNG project.

Sources close to BHP have suggested that the world's biggest miner had effectively ruled out a takeover bid for Woodside while the share price remained above $40, reported The Australian.

BHP told the ASX in April that it was unaware of any reason for market speculation that it would bid for Woodside, although West Australian Premier Colin Barnett revealed the company had sounded him out on a potential bid late last year.

Frenzied speculation about a deal in April pushed Woodside's shares above $48, leading BHP to put the planned takeover on the backburner.

But analysts at Credit Suisse said yesterday that Woodside's plummeting share price -- it has now fallen by almost 15 per cent this month -- could be the catalyst for BHP to swoop on Royal Dutch Shell's unwanted 24 per cent stake in Woodside as a precursor to a takeover.

The shares fell a further 2.2 per cent to close at $39.91 yesterday -- their lowest point since August last year -- after ratings agency Moody's put Woodside on review for a possible rating downgrade.

The stock fell 3.8 per cent on Friday after Woodside's new chief executive, Peter Coleman, revealed that the cost of the flagship Pluto LNG project in WA had blown out by another $900 million to $14.9 billion and been delayed by a further six months.

The announcement came just three weeks after then chief executive Don Voelte said Pluto was 97 per cent complete and would be built for $14 billion.

In a research note yesterday, Credit Suisse noted BHP had a lack of petroleum growth projects in its portfolio and suggested Woodside would provide it with a platform to become a major player in Asian LNG supply for the next three decades.

The bank said BHP may consider a tilt at Woodside especially if the Perth-based group was able to approve an expansion of the Pluto project by signing up third-party gas reserves. "We see the critical issue as being one of price," Credit Suisse said.

"On a risk-adjusted basis WPL (Woodside) may have been too expensive for BHP (once a takeover premium is included), but if WPL's share price stays in the low 40s BHP's interest in WPL may be renewed, particularly if Pluto 2 is de-risked."

Source:

http://www.news.com.au/business/bhp-tipped-to-make-a-move-on-woodside-after-shares-dive/story-e6frfm1i-1226078956812

 

 

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Remote and unspoilt paradise Philippines, the ideal lair for Dragon James Caan

By James Caan

The Philippines attracted us because they seemed so unspoilt.

On previous holidays we had been to exotic Indian Ocean island destinations such as the Maldives - but this time I wanted to step outside the normal commercial holiday options.

Slightly harder to reach than the better-known destinations of South-East Asia - guide books describe them as being on the ‘wrong’ side of the South China Sea - the Philippines are definitely well off the beaten tourist path.

Typically, I like to combine a break in a resort with a couple of city stops en route. This time we flew to Dubai, then to Shanghai before hitting Hong Kong. Travelling with my wife Aisha and our daughters Jemma-Lia, 23, and Hannah, 24, we thoroughly enjoyed our initial three-city tour, and at the end of it we were really looking forward to chilling and relaxing in the Philippines.

We knew that the Philippines as a tourist experience probably wouldn’t be as polished as, say, the Maldives, but they were every bit as attractive - and never felt ‘touristy’.

Our first glimpse of the Shangri-La at Boracay confirmed that it was a stunning property, beautifully done.

The resort’s website had painted an alluring picture of somewhere that was both tranquil and very remote. In real life it was absolutely amazing. I’ve previously stayed at a number of other Shangri-La hotels in India and China. The Boracay property was even better than the others as it is one of their newer properties: everything beautiful and spotlessly clean.

The hotel beaches are fabulous and the service second to none. Most impressive, perhaps, was CHI, the Shangri-La spa that claims to be ‘a place of personal peace, enchantment and wellbeing’. Situated on a rocky peninsula overlooking a private bay, the detached spa village complex is designed to be a sanctuary within the resort. Treatments here are based on Chinese and native Philippines healing concepts, including Hilot, the traditional Filipino healing massage.

I love the spa - it’s one of my favorite holiday experiences - and the one at Boracay proved exceptional. The one thing that makes me slightly uneasy about having a massage is the amount of time it takes. My life is all about getting the most out of every hour in the day, so while I love a massage, I’m not convinced it needs to take a couple of hours. When I was shown into the treatment room by my masseuse, I saw there were three other girls there who didn’t seem occupied. As the masseuse began massaging my head, I discovered that the three other girls had nothing planned.

So I quickly took things over: I said that while my masseuse continued on my head, one of the other girls could massage my back while the other two took a leg each.

I can tell you now that having eight hands massaging me is the most incredible experience I’ve ever had. I think I had a four-hour massage in 60 minutes - perhaps they’ll add it to the spa menu as The James Caan Massage!

The other thing I really enjoyed at Boracay was the Helmet Dive. If you don’t like snorkeling and lack the qualifications to scuba-dive, a Helmet Dive opens the undersea world to anyone.

You are connected by an air pipe to a pump on the boat. As your helmet is filled with air, it keeps out the water but you can put your hand inside to adjust your glasses if you wish (yes, you can wear your glasses or contact lenses).

You can walk about 15ft down on the ocean bottom with fish swimming right up to your face. It is the most marvelous experience.

And it’s one of those things you will instantly want to try out on holiday. But if somebody had come up with this as a business proposition on Dragon’s Den, I can imagine it would have had a rough ride. For various reasons, I would have said ‘I’m out’. But I’m definitely ‘in’ as far as the Philippines are concerned.

Source:

http://www.dailymail.co.uk/travel/article-2005506/Remote-unspoilt-Philippines-ideal-lair-Dragon-James-Caan.html

 

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ASEAN - USA & Australia Supports the Philippines pushed rule of law in West Philippine Sea -Spratlys

The United Nations Convention on the Law of the Sea (UNCLOS) guaranteed 200 Nautical Mile Economic Zone for the Philippines, China, Vietnam, Brunei, Malaysia and Indonesia. UNCLOS did not show any China’s territory in the West Philippines Sea’s Spratlys. China’s limit is only until Paracel islands.  The Philippines recorded already 6 invasions by china to the West Philippine Sea as of June 16, 2011.

The Philippines pressed for adherence to the rule of law in the West Philippine Sea (South China Sea) at the 21st Meeting of States Parties to the 1982 United Nations Convention on the Law of the Sea (SPLOS 21) in New York.

During the meeting from June 13 to 17, the Philippines also rejected efforts to broaden disputes in areas in the region, according to the Department of Foreign (June 18, 2011)

"The rule of law is the bedrock of peace, order and fairness in modern societies. The rise of a rules-based international system has been the great equalizer in global affairs. Respect and adherence to international law have preserved peace and resolved conflicts," DFA Center for Maritime and Ocean Affairs secretary general Henry Bensurto said in a statement, according to the DFA.

Bensurto also said "International law has given equal voice to nations regardless of political, economic or military stature, banishing the unlawful use of sheer force," the DFA added.

In his statement, Bensurto also noted that recent developments in the Recto Bank have tended to broaden the concept of disputed areas in the West Philippine Sea, "to include even those waters and continental shelves that are clearly within the sovereignty and/or jurisdiction of the Philippines."

"The Philippines firmly rejects any efforts in this regard. Such actions are inconsistent with UN Convention on the Law of the Sea (UNCLOS)," he said.

He underlined the Philippines' commitment to international law and the rule of law, specifically UNCLOS, which is considered the world's constitution on oceans.

"We expect nothing less from our international partners," he said.

"In situations where disputes on maritime claims exist, UNCLOS provides clues as well as answers by which such maritime disputes could be addressed," he noted.

He also urged all parties to the ASEAN-China Declaration of Conduct in the South China Sea to faithfully abide by the Declaration provisions.

Bensurto particularly cited paragraph 5, which mandates parties to "exercise self-restraint in the conduct of activities that would complicate or escalate disputes and affect peace and stability."

"The Declaration of Conduct expresses in a concrete way our collective goal for rules-based action by all concerned parties," he added.

During the meeting, the need for maintaining peace and security in the West Philippine Sea (South China Sea) and the primacy of the UNCLOS was also echoed by Vietnam, Indonesia, Malaysia, Thailand, Laos and Singapore in their respective national statements, the DFA said.

It added these nations also called for the peaceful resolution of disputes as enshrined in the UNCLOS.

No offense intended to China

There is no reason for China to take offense at the Philippines’ recent statements over the two countries' territorial row in the Spratly Islands, Malacañang said.

Deputy presidential spokesperson Abigail Valte said the Philippines’ statements had centered on seeking a rules-based settlement, an approach she said China also favors.

“Our statements have always been very clear. Ang approach natin to settling the disputes must be rules-based. We are seeking a multilateral approach... Pareho ang sinasabi nila, sinabi nila there will be no use of force at gusto nila diplomatic ang paraan para sa resolution sa problema”  Valte said on government radio dzRB.

In seeking a rules-based settlement on the matter, the Philippines had respect for the UNCLOS.

The Philippines and China have engaged in a word war of sorts after recent encounters between Philippine and Chinese forces in the disputed area.

Chinese patrol vessels entered in areas that the Philippines claimed part of its 200-nautical-mile exclusive economic zone (EEZ).

Aside from the Philippines and China, four other economies are claiming ownership of the Spratlys – Vietnam, Brunei, Malaysia, and Taiwan.

Meanwhile, Malacañang voiced full agreement with the statement of Australia supporting respect for UNCLOS in tackling “strategic and regional issues of mutual interest."

“The Ministers and Secretaries agreed on the value of rules-based cooperative approaches, respect for international law, particularly UNCLOS. [They] agreed on the importance of sustaining bilateral dialogue on strategic and regional issues of mutual interest, and to establish a strategic dialogue at senior officials’ level to take this forward," the Philippines Australia Ministerial Meeting had said in a joint statement.

On the other hand, the Philippines sought last June 17, 2011 the support of its fellow Association of Southeast Asian Nation (ASEAN) members in pushing for a “rules-based" regime in the Spratlys area.

Foreign Affairs Secretary Albert del Rosario met with ambassadors of ASEAN member states in Manila to brief them on “Philippine perspectives" on the matter.

A news release on the Department of Foreign Affairs website said those present at the meeting June 17, 2011 (Friday) afternoon were:

1.      Indonesian Charge d’ Affaires Sritomo Wirodihardjo

2.      Cambodian Ambassador Hos Sereythonh

3.      Singaporean Ambassador A. Selverajah

4.      Myanmar Ambassador U Aung Khin Soe

5.      Brunei Ambassador Malai Halimah Yussof

6.      Lao Ambassador Malayvieng Sakonhninhom

7.      Vietnamese Ambassador Nguyen Vu Tu

8.      Thai Ambassador Prasas Prasasvinitchai

9.      Malaysian Charge d’ Affaires Zakaria Nasir

“At the meeting, Secretary del Rosario stated that transforming the area into a Zone of Peace, Freedom, Friendship, and Cooperation (ZoPFF/C) provides the key to addressing the claims of the country-claimants and in advancing a peaceful settlement of disputes,"

 

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