Royal Dutch Shell has extended its offer for AIM-listed oil explorer Cove Energy after being trumped by Thai firm PTT Exploration and Production (PTTEP) on Wednesday.
Shell, which had previously had its 220p-a-share cash offer recommended by Cove, says that the new closing date for the offer will be June 13th at 13:00 (the last deadline was May 23rd at 13:00).
PTTEP's cash offer of 240p per share, which values Cove at £1,221.4m, represents a 9.1% premium to Shell's bid.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Shell Bidco notes the recent announcement made by PTT Exploration and Production Public Company Limited of its offer for Cove. Shell is currently considering its options and will make a further announcement if appropriate," Shell announced on Thursday morning in a statement.
Analyst Wemer Riding from Peel Hunt said - following PTTEP's offer - that "there remains the distinct possibility that a further counter-offer could transpire."
Shares in Cove Energy jumped 11.61% on Wednesday to 250p on the back of PTTEP's offer.
BC
-
Are you one of 15 million people at risk of retirement poverty?Two-fifths of people in the UK aren’t on track for a minimum lifestyle in retirement, new data shows. Are there steps you can take to boost your pension?
-
150 banking hubs now open across UK – is there one near you?As the 150th banking hub opens its doors, a Post Office deal that offers basic banking services has also been extended until 2030. We explain what this means for you
