Anglo-Dutch energy producer Royal Dutch Shell has formally thrown in the towel in its quest to buy Africa-focused oil and gas firm Cove Energy, leaving the way clear for rival bidder PTT Exploration and Production (PTTEP).
Shell decided on July 16th not to increase its offer for Cove Energy, ducking out of a bidding war with Thailand's PTTEP. After receiving acceptances of its offer from shareholders representing just 1.25% of the existing share capital of Cove it has allowed its offer to lapse.
In contrast to the desultory response to Shell's offer, PTTEP said it has received acceptances of its offer from shareholders accounting for 74% of the issued share capital of Cove; the Thai outfit has set a minimum acceptance level of 90% in order for the takeover to go through.
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
Both companies were keen to get their hands on Cove's interests in gas fields off the coast of Mozambique. PTTEP's £1.22bn bid, based on a price of 240p per Cove share, trumped Shell's 220p a share offer, and won the backing of the Cove board.
The defeat represents a setback for Shell, which on Wednesday announced a 25% fall in earnings on a current cost of supply basis for the second quarter of 2012.
JH
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
