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|Shell Abandons Its Bid For UK Listed Cove Energy|
|=Decided not to take part in Auction Procedure|
Royal Dutch Shell abandoned its bid for UK listed Cove Energy PLC. Taking into consideration the fact that the takeover battle for Cove Energy have become bogged down between Shell and Thailand's PTT Exploration and Production (PTTEP), Takeover Panel, a regulator of issues connected to mergers and acquisition recommended a settlement with a sealed-bid auction. However, on July 16th, Shell decided not to participate in the auction and expressed its intention to withdraw from the battle with PTTEP.|
On July 13th (local time in London), Takeover Panel notified Shell and PTTEP of its recommendation that both companies should commence the auction procedure if the situation remains unchanged by July 17th 17:00. During the auction, each company will show its bid price once a day in response to the other's reaction, which will continue until either Shell or PTTEP drops the auction. As a natural consequence, the bid price will inevitably go up.
Upon receipt of the notification, PTTEP announced in the early morning of July 16th that it will further extend the deadline for Cove shareholders to accept its bid until July 25th, which had been closed on July 13th, and showed its will to take part in the auction.
On the other hand, Shell announced its decision in the afternoon of July 16th neither to raise its bid for Cove Energy nor to take part in the auction.
As Shell decided to withdraw from the battle, PTTEP is expected to acquire Cove Energy unless other competitors emerge. In that case, PTTEP will obtain 8.5% stake in Rovuma Offshore Area 1, Mozambique, which Cove Energy owns. With gas exploration and development of LNG project in the area, PTTEP is expected to complete LNG value chain.
|last modified : Mon 23 Jul, 2012 [10:13]|