AOE 0.00% $4.68 arrow energy limited

shell still bullish on lng, page-6

  1. 212 Posts.
    Mont, don't you sleep? :)

    Pickard can't really say anything at all for the following reasons:

    1. Stating too quickly that the deal will not change will imply the following:
    a.) Shell are expecting huge margins from this deal and we're being pitched a low-ball offer
    b.) They are endorsing that the resource tax will not stall their plans as they will still receive an acceptable commercial return. This will give the government a reason to hold the super tax rate where it is.

    2. If they revise the deal down then:
    a.) Opens bid up to more parties
    b.) Pushes shareholders on the fence to reject the deal

    best strategy for them is to stay silent and let the miners fight for a watered down version of the super tax.

    This doesn't really change my dislike of the government & Shell though.
 
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