Arrow misses targetArrow Energy looks set to bow out of the...

Arrow misses target
Arrow Energy looks set to bow out of the bidding war over Pure Energy, after its much larger rival, Britain's BG Group, gained the support of the target's board. Last night was the last chance for Arrow to raise its bid before Pure directors and major shareholders - who hold a 20 per cent stake - sold into BG's bid of $8 a share. As Xchange went to print, Arrow let the deadline lapse, but was tight-lipped on its plans. Pure's directors had not yet sold their stake and were said to be "sitting tight". The market thinks a higher bid is unlikely.

In spite of BG's premium, Arrow has maintained that its offer of $3 and 1.57 Arrow shares for each Pure share was "excellent", but it will have a hard time succeeded without the target's board. After Arrow's first bid of $673 million for Pure last year, BG's arrival has upped this once-obscure company's market value to $995 million.