Updating BHP Billiton Ltd., Arconic Inc. and SNC-Lavalin Group Inc.

Article Excerpt

BHP BILLITON LTD. (ADR) $48 (New York symbol BHP; Resources sector; ADRs outstanding: 1.6 billion; Market cap: $76.7 billion; Dividend yield: 4.6%; Takeover Target Rating: Medium; www.bhpbilliton.com) is a leading producer of iron ore, oil and natural gas, copper and coal. In response to pressure from activist investor Elliott Management, BHP has sold its onshore U.S. shale assets to BP plc (ADR), New York symbol BP, for $10.8 billion. The company originally acquired those assets in 2011 for $20 billion U.S. Since then, it spent a similar amount developing those properties. However, lower oil and gas prices forced BHP to write off most of those investments. The sale of the shale assets lets BHP simplify its wide-ranging resource portfolio. The company will probably use the proceeds to increase its dividend—the current annual rate of $2.20 per ADR yields 4.6%—and stock buybacks. BHP Billiton is a buy. ARCONIC INC. $21 (New York symbol ARNC; Manufacturing & Industry sector; Shares outstanding: 481.3 million; Market cap: $10.1 billion; Dividend yield: 1.1%; Takeover…

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