The Star Online - Mar 15, 2010Arrow Energy Limited (AOE)
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John Young
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Wilson HTMPERTH: Australia's
Arrow Energy is set to reject as too low a US$3bil joint takeover offer from Royal Dutch Shell and PetroChina, a newspaper reported, a move that could prompt the bidders to return with a higher, hostile bid. A stream of analysts' comments suggesting the offer was too low, coupled with how long it had taken Arrow to assess the offer, had triggered speculation the proposal would be rejected, the Australian Financial Review said yesterday.
"My view is that they (Shell/PetroChina) will need to raise their offer to the high US$5US$6 (per share) range for the deal to go through," said John Young, energy analyst at Wilson HTM Investment Group. Shell and PetroChina last week offered A$4.45 in cash for each Arrow share, plus a share in a new Arrow entity, in a first foray for a Chinese company in Australia's burgeoning coalseam gas sector.
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PERTH: Australia's <span class="company">Arrow Energy</span> is set to reject as too low a US$3bil joint takeover offer from Royal Dutch Shell and PetroChina, a newspaper reported, a move that could prompt the bidders to return with a higher, hostile bid. A stream of analysts' comments suggesting the offer was too low, coupled with how long it had taken Arrow to assess the offer, had triggered speculation the proposal would be rejected, the Australian Financial Review said yesterday.<span class="sent"> "My view is that they (Shell/PetroChina) will need to raise their offer to the high US$5US$6 (per share) range for the deal to go through," said <span class="analyst">John Young</span>, energy analyst at Wilson HTM Investment Group.</span> Shell and PetroChina last week offered A$4.45 in cash for each Arrow share, plus a share in a new Arrow entity, in a first foray for a Chinese company in Australia's burgeoning coalseam gas sector.
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