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).
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Shell’s Bid for Barrett Continues; Other Offers Predicted
In a second lawsuit filed last week to prevent future legal roadblocks, Royal Dutch Shell Group asked a federal court to declare that its tender offer to take over Denver-based Barrett Resources Corp. complied with the regulations of the Securities and Exchange Commission, and that Barrett may not file a lawsuit on any merger-related issues except in the Delaware courts, where Barrett is incorporated.
Gas-Rich Independents More Attractive to Buyers
Analysts covering the attempted takeover of Barrett Resources byRoyal Dutch Shell Group said last week they expect to seeadditional consolidation of U.S. independents with a heavy gasportfolio, especially now that the majors and larger independentsare flush with cash from through-the-roof commodity pricing in thepast year.
Shell Fires Second Lawsuit; Barrett Responds
In a second lawsuit filed this week to prevent future legalroadblocks, Royal Dutch Shell Group is asking a federal court todeclare that its tender offer to take over Denver-based BarrettResources Corp. complies with the regulations of the Securities andExchange Commission, and that Barrett may not file a lawsuit on anymerger-related issues except in the Delaware courts, where Barrettis incorporated.
Barrett Rebuffs Shell’s $2.2 Billion Takeover Bid
Barrett Resources wasn’t quite ready to circle the wagons onFriday to fight off a hostile takeover bid by Royal Dutch ShellGroup, but did give Shell the cold shoulder. Barrett said it wouldbegin an open bidding process to consider proposals from “a numberof qualified parties, rather than commencing negotiations solelywith Shell under artificial deadlines that only serve Shell’sinterests.”
Shell Launches Bid for Denver’s Barrett Resources
Royal Dutch Shell Group yesterday launched a bid to buy naturalgas-rich independent Barrett Resources Corp. of Denver for $2.2billion in cash and assumed debt, which would give Shell animmediate presence in the Rocky Mountains. While Barrett’s board ofdirectors indicated it might fight the offer, Shell promised tobegin a hostile takeover if it is rejected.
Shell LNG Could be U.S. Bound
Royal Dutch/Shell said yesterday it expects to have plans inplace by this July to export liquefied natural gas to the UnitedStates and southern Europe from Egypt. Egypt has enough gasreserves to commit 10 Tcf to 15 Tcf to export, said Shell.
MMS to Expand Deep-Water Royal Relief
To encourage drilling of marginal deep-water wells (200 metersand greater) in the Gulf of Mexico, the Minerals Management Service(MMS) has proposed a new rule expanding discretionary royaltyrelief for properties that would otherwise be considereduneconomic.
Apache, Shell Bid for Fletcher Expected to be Amended
A joint bid by Apache Corp. and Royal Dutch/Shell Group’s Overseas Holdings to buy New Zealand-based Fletcher Challenge Energy Ltd. is still alive despite an initial rejection by the Commerce Commission of New Zealand, which holds ultimate sway over the country’s mergers.
Industry Briefs
Chevron, the Royal Dutch/Shell Group and Schlumberger havebecome equal partners in a new Houston-based company, OpenSpiritCorp., which will offer a standardized software infrastructure forthe energy industry. The initial framework was funded by OpenSpiritAlliance, a three-year-old collaboration of exploration andproduction companies and software vendors that studies ways tobetter develop, deliver and use E&P applications. OpenSpiritCorp.’s vendor-neutral and platform-independent applicationframework is expected to be available before the end of the year.Neil Buckley, former president of U.S. operations for Merak, adivision of GeoQuest, will serve as CEO. More information isavailable at www.openspirit.com.