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Shell Gives Another Extension Of Deadline To Cove Shareholders
=By 2 weeks valid until July 25th, possibly to go to a sealed-bid auction
Royal Dutch Shell gave an another extension of deadline to shareholders of the UK listed Cove Energy PLC. The 220 pence per Cove share was presented by Shell, which has so far extended the deadline three times to accept its offer. However, as of July 11th, being the third closing date of the offer, only 3.27% of Cove's investors had accepted the Shell's offer. There has been almost no progress in its acquisition of Cove Energy.

Under the circumstances, Shell has taken a step for the extension for the fourth time, which is valid until July 25th. The contents and price of the offer remain unchanged.

On the other hand, Thailand's PTT Exploration and Production (PTTEP) is also proposing to acquire Cove Energy. Its offer of 240 pence per share is 9.1% more than the 220 pence that Shell agreed to pay.

However, most Cove Energy shareholders have expected both company to intensify the takeover battle further and have not accepted either of offers. Incidentally, Cove Energy is mostly owned by institutional investors, consisting of 14.86% by Deutsche Bank AG as of the end of June 2012, 14.01% by Credit Suisse and 11.06% by UBS Investment Bank, etc.

At present, PTTEP has set up the deadline on July 13th 13:00 (local time in London), but is likely to extend it again to wait for the shareholders reactions as any actions have not been taken by Shell.

Since Shell and PTTEP battle has been in a stalemate, some people anticipate that Takeover Panel, UK's main regulator of issues connected to mergers and acquisition, will recommend a settlement with a sealed-bid auction soon.
last modified : Fri 20 Jul, 2012 [14:51]
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