Shell extends offer deadline for Cove

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.

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"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