Denver-based Barrett Resources Corp. again played David to Goliath on Monday, announcing that its board of directors, “based upon opinions that it received from its financial advisers and other factors,” unanimously rejected as inadequate Shell Oil Co.’s $60 per share cash tender offer made last week (see Daily GPI, April 27). The board also recommended that shareholders not tender the Shell offer or grant any written consents that Shell might seek.

In a letter sent Monday to Walter van de Vijver, CEO of Shell Exploration and Production Co., Barrett’s board responded to Shell’s request that the board “consider [Shell’s] bid on an equal basis with any others.” Barrett invited Shell to submit its “best and final offer” by noon on Wednesday, the date proposals are due for all parties involved in Barrett’s previously announced process to seek strategic alternatives.

“These are ground rules applicable to all others,” said the letter. In rejecting Shell’s offer, the Barrett board said that “the opinion of [financial adviser] Goldman, Sachs, after reviewing with the board many of the factors referred to herein and other financial criteria used in assessing the offer, that, as of April 30, 2001, the $60 Shell offer price is inadequate to Barrett’s stockholders.”

The letter also stated that it was the board’s “continued belief, after discussion with its financial advisers and the board’s evaluation of the progress of the previously announced process for seeking strategic alternatives, that there is a reasonable likelihood that the process will yield a superior transaction.”

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