Global miner, BHP Billiton Ltd., facing its shareholders for the first time after dropping a $66 billion bid for rival Rio Tinto, told its Australian annual meeting that the bid would have elevated its debt to "unacceptable" levels amid the worst credit crisis since the Great Depression.

BHP scrapped its hostile bid for the London-based Rio on November 25, citing economic turmoil, slumping demand for commodities and Rio's $42.1 billion of debt.

Steelmakers in Asia and Europe warmly welcomed the scrapping of the proposed takeover, as they had feared the creation of a global giant that would hold the upper hand in annual price negotiations, in case the deal came through.

Don Argus, BHP's chairman said a BHP-Rio Tinto combined would have had market value of $84 billion and net debt of $78 billion. BHP has net debt of $6.3 billion, and an acquisition would have left the combined group with gearing ratio of close to 48 percent. Argus said: "A heavily geared position and reduced capacity to deal with that debt, creates unacceptable financial risks for BHP Billiton shareholders."

The company, however, retained a strong balance sheet despite the market slump, and remained ready to pursue other acquisitions, especially firms weakened by the financial crisis. Mining analysts expect BHP to target rivals worth more than $1 billion and with assets still operating in the black.

Chief Executive Officer of BHP, Marius Kloppers noted that the company's longstanding focus on strong balance-sheet capability and financial stability stand it in good stead in the present volatile environment, and it is in a position to take advantage of opportunities that may arise as others falter.