BHP head to focus on downturn after Rio failure

By Eric Onstad

LONDON (Reuters) - BHP Billiton (BLT.L) Chief Executive Marius Kloppers will likely use the same pragmatic resolve to grapple with a collapse in metals markets that he did in ditching a mega takeover of mining rival Rio Tinto (RIO.L).

The 46-year-old South African fought hard during a year-long battle to swallow Rio, but ultimately his bid was undone by the world's worst financial crisis since the 1930s Great Depression.

Melbourne-based Kloppers' name was thrust into the media spotlight when he took the helm of BHP Billiton just over a year ago, and weeks later launched the audacious tilt at Rio.

Yet, for such a high-profile person, surprisingly little is written about Kloppers himself, his motivators or his personality.

Publicly, he is the highly-educated and determined businessman with superb organizational skills and a clear vision of what he wants to achieve.

Kloppers also served two years in the South African army, has a taste for Bob Dylan songs, is a vegetarian, and is well-liked by his staff.

He is notorious for abhorring desk clutter, although a company spokeswoman denies claims that pictures of sweethearts and families are forbidden in the workplace.

Now, in the wake of the Rio deal, analysts and investors have widely supported his decision as the right one considering the turmoil on financial markets and Chairman Don Argus has said Kloppers had the full support of the board.

"While this is a big climb-down for BHPB and Marius Kloppers, conditions have indeed changed significantly and we believe this decision shows the triumph of pragmatism over ego and that BHPB is indeed focused on shareholder value," said analyst Kieran Daly at Investec Securities in South Africa.

Some analysts, however, said the deal's collapse put a dent in the reputation of BHP under Kloppers, who has been regarded as a clever strategic thinker since he joined Billiton in 1993.

"We feel neither company has come out smelling roses ... BHPB under new CEO Marius Kloppers I think has misjudged the ferocity of the anti-trust process. I am not sure either side is sufficiently damaged for heads to roll," said analyst Michael Rawlinson at Liberum Capital in London.

Kloppers, a married father of three, launched the plucky Rio move in November 2007 after only six weeks on the job as chief executive. BHP (BHP.AX) was already the largest diversified mining group, with more than 100 operations spanning the globe in 25 countries, but Kloppers was convinced a marriage with Rio (RIO.AX) would reap big synergy dividends.

It would have been one of the world's biggest mergers.

TOUGH DECISION

The former management consultant with a Phd in materials science had assembled extensive research, including scenarios showing the deal would work even in a downturn.