Arrow Energy May Rebuff Shell, PetroChina Bid
March 15, 2010 2:15 AM
Royal Dutch Shell (NYSE: RDS-A), the second-largest European oil company, and PetroChina (NYSE: PTR), may see their $3.03 billion bid for Australian coal-seam gas producer Arrow Energy rejected, according to the Australian Financial Review, which didn't say how the information was obtained.
Since news of the acquisition offer broke last week, analysts have speculated that Shell and PetroChina may need to boost their offer, which has been viewed as cheap by historical standards.
The current offer values Arrow at $4.07 a share and there is speculation that says that an offer for Arrow may need to approach $4.60 a share before Arrow is convinced to sell. Shell already owns a 30% interest in Arrow's international business.
In 2008, BP (NYSE: BP), the largest European oil company, paid almost $5.50 a share to acquire another Australian gas producer, Queensland Gas Co.
