BHP Billiton (BHP) fell by almost 3% this morning after the Australian-listed company announced that it has ceased its controversial share buyback program.
BHP said in a statement that it has continued to buy back shares in London-listed BHP Billiton Plc since the mining group announced on November 8 it was considering making an offer for rival Rio Tinto.
"BHP Billiton confirms that these purchases have been made by an independent third party on behalf of BHP Billiton under an irrevocable mandate," the company said in a statement.
The mandate ended on Friday, and BHP said it will suspend the program of buying on-market ordinary shares in BHP Billiton Plc as was announced on February 7, , from the expiry of the mandate until further notice.
The suspension of the share buyback comes as the UK Takeover Panel is poised to give BHP a "put up or shut up" deadline to either launch a bid for Rio or back down.
The panel is expected to set a six to eight week deadline as soon as tonight or tomorrow.
If the ruling passes, BHP will be required to formalise its $140 billion 3-for-1 share.
The market expects that the mining group will likely try to win over Rio by sweetening the current offer, rather than launching a hostile bid.
As at midday, shares in BHP were trading at $40.90, a loss of $1.15.
