Takeover Bids
In December 2004, Xstrata, a Swiss mining company, announced a takeover offer for the company. In February 2005, the WMC board recommended that shareholders reject the offer. The government did not object to the takeover through the Foreign Investment Review Board, however a number of people (including members of the Government) expressed concerns due to the economic (and strategic) importance of the Olympic Dam resources, and the reputation of Xstrata and its major shareholder, Glencore.
The Xstrata takeover offer lapsed after a higher offer was made by BHP Billiton, with support from the WMC Resources board. On the afternoon of 3 June 2005, about 6 hours before the BHP Billiton takeover offer was due to close, it was announced that 55% of the shares had accepted the offer. This automatically (according to Australian Corporations law) extended the offer period by another 14 days to 17 June. BHP Billiton had gained control of the company. On the afternoon of 17 June 2005, BHP Billiton announced that it had achieved 90.5% ownership, and would proceed to compulsory acquire the remaining shares.
As a result of the takeover, most of the board and the CEO resigned, to be replaced by BHP Billiton appointees. BHP Billiton Executive Director Mike Salamon took over the position of Chairman of the board, and Chris Campbell took over as interim CEO. Subsequently, the company name has been replaced by the BHP Billiton corporate identity, and a significant name in Australian mining history ceased to be used.
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