Shell Aware of PTTEP Bid for Cove. Evaluating Options
Shell Bidco, a subsidiary of Shell, which has been competing with Thailand’s PTTEP over Cove Energy acquisition announced today that it was aware of PTTEP’s yesterday’s increased takeover bid of $1.9 billion.
Shell’s previous $1.8 billion bid to acquire all issued or to be issued shares of UK-based Cove Energy had been endorsed by the Cove board until the higher bid from the Thai oil giant arrived.
On Monday, Cove Board even urged its shareholders to accept Shell’s offer saying that “to date, Shell Bidco is the only firm bidder and has strongly recommended its shareholders to accept the offer as soon as possible.”
But, yesterday’s $1.9 billion bid by PTTEP caused the Cove board to change their minds. PTTEP’s press release read: “The directors of Cove unanimously recommended to Cove Shareholders that they accept the Offer”.
Thai PTTEP and Shell have locked horns in the bidding race for Cove Energy, trying to get in possession of Cove’s primary asset, an 8.5% interest in the natural gas rich Mozambique Rovuma Offshore Area 1.
In the statement made today, Shell said it was considering its options and would make a further announcement if appropriate. Nevertheless, Shell’s $1.8 billion bid remains open for acceptance until June 13, 2012.
Offshore Energy Today Staff, May 24, 2012