Defending its hostile takeover attempt for Denver-based BarrettResources Corp., Royal Dutch/Shell Group’s CEO Walter van de Vijversent a letter to Barrett’s board of directors Wednesday calling the$55 a share offer a “full and fair value” for the gas-richindependent. Barrett has rejected Shell’s offer and is nowconsidering strategic alternatives (see Daily GPI, March 12).

In part, van de Vijver’s letter, addressed to the board andBarrett CEO Peter A. Dea, said that Shell sees “no basis for yourBoard’s conclusion that our tender offer is inadequate. We are alsoconcerned that your board might pursue a strategy to remainindependent instead of maximizing shareholder value by selling thecompany. Therefore, we would like to convey our concerns, as wellas propose a path forward that utilizes a shareholder-friendlymerger agreement, directly to you and your fellow directors.”

The letter continued, “.in Shell’s view, the negotiating postureadopted by the Barrett board may be encouraging unrealisticexpectations about values in the present context and could prove inthe end to be harmful to your shareholders.”

Van de Vijver said that Shell has devoted “substantialresources” in evaluating Barrett as it seeks to establish apresence in the Rocky Mountains, and said that the company has”deployed more than 20 members of its own internal technical staff,as well as other outside consultants, in evaluating Barrett’sassets.” Because of all of Shell’s expertise, he said its valuationof Barrett “is right on target.”

He said that Shell is interested in reaching a merger agreementwhereby Barrett could continue to study its alternatives throughMay 11 so that “shareholders could be assured of a sale of theircompany that secures them a minimum cash purchase price for theirshares.” The letter indicated that Shell sees “Barrett and itstalented employees serving as the cornerstone of our Rocky Mountaincore area, and we would welcome your ideas as to how to best expandon your existing operations through additional acquisitions.”

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