BHP Billiton files for divorce

Mr Gilbertson's resignation after only six months in the job caught the market by surprise.

The news knocked 41c, or 3.9 per cent, off the stock price, which closed at $9.92.

The market was not happy with BHP Billiton's short explanation for Mr Gilbertson's departure as being due to ``irreconcilable differences" with the board.

BHP Billiton said there was not one big issue behind the decision. Rather, Mr Gilbertson's departure was more about differences in ``style and approach" that the South African, who has a reputation for abrasiveness, had with the board.

Insiders said that since taking over as CEO from Paul Anderson in July, Mr Gilbertson and the board, led by chairman Don Argus, had clashed repeatedly about the formation and execution of decisions.

Mr Gilbertson forced the issue on Saturday when he tendered his resignation at a special board meeting at the group's Melbourne head office.

Some of the directors were on teleconferencing facilities.

Once it became clear the differences between Mr Gilbertson and the board were irreconcilable, the board turned its attention to finding a replacement.

To the surprise of some in the market, it decided against a lengthy global search, calling on the group's London-based chief development officer, Chip Goodyear, to fill the breach.

The board appointed him at 8pm on Sunday. While the weekend ended nice and neatly despite the blood-letting, BHP Billiton suffered the embarrassment of having to confirm to the Australian Securities and Investments Commission yesterday that Mr Gilbertson's departure was ``not related to any concerns by the board about the financial performance of the group".

But company watchers were convinced there was more behind the decision by Mr Gilbertson, previously the London-based executive chairman of Billiton, to have the weekend showdown.

Many were convinced Mr Gilbertson had frightened the board with an aggressive plan to grow the petroleum division.

There has been speculation for a couple of months that Mr Gilbertson was about to appoint a South African oil executive to run the campaign, which many believe involved the much talked about tilt at the Shell-controlled Woodside Petroleum.

Mr Goodyear came to the merged group through his previous position as finance director at BHP under its then CEO, Paul Anderson.

He is well regarded by the market for his focus on financial disciplines rather than for any deal-making flair.

Mr Gilbertson was said to have a mix of both. The rapid growth of Billiton in the 1990s from a small South African miner to the global mining group worthy of BHP's attention reflected that reputation.

Billiton got the better of the bigger BHP in the merger deal, getting 40 per cent of the merged group instead of the 30 per cent most thought would have been fair at the time.

Because of Mr Gilbertson's CEO-elect status at the time of the merger, Billiton was also seen to be getting management control.

Mr Gilbertson's departure, along with those of other key Billiton executives, means management is back in ``old" BHP hands. That is in keeping with the Federal Government condition on the merger with Billiton that the CEO's prime residence be in Australia.

Mr Argus said that, unlike Mr Gilbertson, Mr Goodyear had the board's full support in continuing the group's strategic approach.

``Chip is an outstanding executive with solid resources industry experience. He is widely respected throughout the company," Mr Argus said.