Aberdeen backs activist investor over US shale

Aberdeen Standard Investments has said it backs activist shareholder Elliott Investors over its criticisms of Australian mining giant BHP Billiton.

BHP has faced pre-tax writedowns of about $13bn thanks to its US shale business. It entered at the height of the fracking boom in 2011 and invested billions.

Aberdeen Asia managing director Hugh Young says the activist shareholder is “100 per cent correct” in pushing change at BHP, Reuters reports.

Young said Aberdeen was in “very close” contact with Elliott Investors, while noting that the investors have different time horizons.

BHP confirmed it would be selling out of its shale business at its AGM in Melbourne on Thursday.