BHP buy-back on the cards

BHP Billiton, the world's largest mining company, may resume buying back shares as rising metal prices increase its available cash, says UBS.

Analysts led by Glyn Lawcock said in a report on Monday that BHP might announce a buy-back as soon as February 10, when it releases its first-half profit.

A buyback might focus on London-traded shares because the spread between them and its Sydney shares widened to 21 per cent, Lawcock said.

BHP suspended an earlier buy-back when it made a hostile takeover for Rio in 2007 that was abandoned the next year as the world economy slowed.

"Since suspending its buyback programme in December 2007," Lawcock said, "BHP has only returned cash to shareholders via the ordinary dividend route."

- BLOOMBERG