Arrow to reject Shell, Petrochina $3 bln bid-paper
SYDNEY, March 15 (Reuters) - Australia's Arrow Energy (AOE.AX: Quote, Profile, Research) is set to reject this week Royal Dutch Shell (RDSa.L: Quote, Profile, Research) and PetroChina's (0857.HK: Quote, Profile, Research) $3 billion joint bid, a paper said on Monday citing an unnamed source. A steady stream of voices suggesting the offer is too low has fed speculation Arrow will turn down the bid, according to a report by the Australian Financial Review.
On March 9, Royal Dutch Shell and PetroChina offered A$4.45 in cash for each Arrow share, plus a share in a new Arrow entity, in a first foray from a Chinese company in Australia's burgeoning coal-seam gas sector.
Arrow's board recommended shareholders take no action on the offer, which is non-binding and conditional, and appointed Citi and UBS as financial advisers to evaluate the deal.
(Reporting by Cecile Lefort)
AOE Price at posting:
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