BHP Billiton’s (ASX:BHP) new takeover target, Petrohawk, has welcomed the bid, but Australian analysts have cast doubts over its value.
Petrohawk’s founder Floyd Wilson said the AU$14.2 billion takeover bid for his American company would help take it into the future. Petrohawk’s petroleum division chief executive said the company is now looking at the possibility of being a one-million barrel a-day oil and gas company, within five years.
But JPMorgan analysts said BHP’s plans to spend $75billion over the next decade may not deliver much more to the company than its cost of capital.
The acquisition will go live on July 25.
For the second half of 2010, BHP reported a net profit of $10.5 billion.
