BHPB eyeing Impala?

Today’s new board appointment makes Alec Hogg think there might be something behind the rumour.

JOHANNESBURG - 

Keith Rumble, the youthful former CEO of world number two platinum producer Impala (JSE:IMP), has been appointed to the directorate of the world's largest resources group BHP Billiton (JSE:BPH). The news, announced this morning, has added fuel to rumours that Impala is being lined up for takeover.

Rumble, a fit 54 year old South African, was a surprise departure from Impala in 2006 after leading the business for five years. He had been headhunted from Rio Tinto where he had been running its titanium operations headquartered in Canada.

A keen golfer, Rumble is based in Johannesburg and has spent most of his working life in South Africa, having previously been managing director of Richards Bay Minerals, Rio Tinto's SA-based titanium operation.

BHP Billiton has no platinum interests, the only obvious gap in its otherwise comprehensive resources portfolio. Impala, which has a wide shareholder base, is the most obvious entry point for the group. Anglo Platinum, the industry's largest producer, is controlled by Anglo American plc. Number three, Lonmin, is currently the subject of a hostile takeover bid from Xstrata, run by another South African, former Eskom and Billiton executive Mick Davis.

At the beginning of the year Rumble was appointed CEO of SUN Mining. Formed in 2005, the offshoot of an Indian private equity firm has been developing platinum group metals projects in South Africa and gold prospects in Russia and Kazakhstan. This morning's official release from BHPB notes that Rumble is no longer with SUN Mining.

BHPB Chairman Don Argus says: "Keith has more than 30 years experience in the mining industry and is highly regarded in the international mining community. His depth of senior management experience and knowledge of the industry will be an asset to the company."

Rumble's departure from Impala http://www.moneyweb.co.za/mw/view/mw/en/page62053?oid=42490&sn=Daily%20news%20detail) was a surprise, with an initial announcement of a phased withdrawal followed by one that he would be leaving "with immediate effect".

Impala is currently capitalised at R144bn, down more than a third in the past three months. The shares peaked at R368 in February and were last trading at the current level around R230 in December 2007. - alec@moneyweb.co.za

Alec Hogg is Mineweb's editor-in-chief.

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