Shell/Cove/PTT 'It ain't over'

[Tree]

Wasn't Phil reported in Thailand this week en route to the AGM?

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Andrew Hobbs 14 June 2012 07:35 GMT
Supermajor Shell has extended the closing date of its takeover offer for UK-listed Cove Energy to 27 June 2012, despite the target advising its shareholders to accept a rival bid from Thailand’s PTT Exploration and Production.
The extension of time did not come with an increase Shell’s bid price of £2.20, under the revised PTTEP bid £2.40 which Cove directors changed their position to recommend in May.

The PTTEP bid, which valued the company at $1.9 billion, also last month received approval from the Mozambican government.

Shell offered few clues of its future plans in an announcement to the London Stock Exchange, saying that it had received valid acceptances of shares worth 4.84% of Cove’s total issued capital.

Cove has an 8.5% stake in massive gas finds offshore northern Mozambique. Project leader Anadarko Petroleum plans to build large plants to freeze the gas to liquefied natural gas for export in ships.

[Tree]

Shell puts in more time on Cove Energy offer


13:32:09 BST
By Adveith Nair and Sarah Young
LONDON | Thu Jun 14, 2012 12:08pm BST
(Reuters) - Royal Dutch Shell (RDSa.L) has given itself more time to decide the next move in its battle to buy Cove Energy (COVE.L), extending the acceptance deadline on its $1.8 billion bid as it vies with Thailand's PTT Exploration and Production PTTE.BK for an entry into East Africa's big new offshore gas play.

Shell said on Thursday it was extending the deadline for Cove shareholders to accept its 220 pence per share cash offer by another two weeks until June 27 after receiving valid acceptances for just 4.8 percent of the shares by the time of the last offer period closing at 0800 EDT on Wednesday.

Analysts still believe that Shell will increase its bid to trump PTT's 240 pence per share offer worth $1.9 billion.

Shares in Cove, which have already been trading well above PTT's offer were up 0.2 percent at 264.5 pence by 0500 EDT, valuing the business at just under 1.3 billion pounds ($2 billion).

"I think Shell will come back," Investec analyst Stuart Joyner said. "They could possibly pay up to 300 pence per share, possibly more, given the recent discovery."

Cove's partner in Mozambique, U.S. firm Anadarko Petroleum Corp (APC.N), earlier this week announced a further major offshore gas find there.

Analysts at Mirabaud Securities said Shell's move to extend the offer deadline reinforced suspicions that the company was working on an improved offer.

A 300 pence per share offer would value Cove at just under 1.5 billion pounds, according to Thomson Reuters data.

"If Shell comes back with a higher offer, that would probably finalize it," Joyner said. "I don't see PTT coming back a third time ... I would imagine a 300 pence per share offer would probably finalize this."

Meanwhile the head of Africa-focused French oil producer Maurel et Prom (MAUP.PA) on Thursday dismissed speculation that Shell (RDSa.L) had also approached it about a possible takeover.

LUCRATIVE EAST AFRICA

East Africa is set to become one of the world's largest gas exporters supplying energy-hungry Asia, after a string of major discoveries across Mozambique and Tanzania, which has attracted the interest of major oil firms.

Cove's main asset is an 8.5 percent stake in the finds made by Anadarko off the coast of Mozambique, where plans are afoot to build large plants to ship the gas abroad as liquefied natural gas.

Analysts said an announcement on Thursday by Statoil (STL.OL) and ExxonMobil (XOM.N) about the discovery of another large gas deposit off the coast of Tanzania only added to the attractions of the area for Shell.

"Shell are very keen to get into the East African gas story," Investec's Joyner said. "Shell is effectively locked out of the key areas of movement (in East Africa)."

Joyner said Shell had to make an acquisition to enter East Africa, but added that other companies with positions there, including Statoil, Exxon, Anadarko and Italian oil group Eni (ENI.MI), were unlikely to sell.

"That's really why they are going for Cove so aggressively."

The bidding war for Cove started after Shell's initial $1.6 billion offer in February was trumped by PTT's offer of $1.8 billion.

The oil major then raised its offer to match PTT's bid, but this attempt too was thwarted by PTT, which countered with a $1.9 billion, 240 pence per share bid in May.

[Justin94360]

Would be nice if they were extending until 25th July as they know there's some news coming from another little project we know about....

Shell names new deadline for Cove Energy bid

http://www.financial-news.co.uk/6329/201...nergy-bid/

Royal Dutch Shell Plc (LON:RDSA) announced on Thursday a new extension until 25 July for its £2.20 ($3.41/€2.80) a share takeover offer for Cove Energy Plc (LON:COV), after securing 3.27% in the British oil and gas explorer by the previous deadline on 11 July.

Of the total acceptances, irrevocable commitments cover only 0.95% of the target’s capital, the buyer said.

The offer, valuing Cove at around £1.12bn in total, was agreed in April and outmatched by Thai oil and gas explorer PTT Exploration and Production Pcl (PINKEXNY), or PTTEP, which proposed in late May to buy Cove at £2.40 per share.

At the time, Shell said that in the light of the higher rival offer it was looking into options regarding its own bid. Its offer, launched on 2 May, was first extended to 13 June and further until 28 June and 11 July.

Shell wants to buy Cove to strengthen and diversify its global liquefied natural gas (LNG) portfolio of production and development projects, it has said. Cove’s board agreed to back the deal in April, but later withdrew its support and accepted the £1.22bn transaction with PTTEP, whose offer is also running with a new deadline set for 13 July. PTTEP said its bid won 0.25% acceptance by 6 July.

Both bids are subject to winning an acceptance level of at least 90%.

In an earlier comment, Cove’s CEO John Craven said that the offer from the Thai group represented substantial value for shareholders, while recognising the world-class nature of Cove’s assets in East Africa.

[Tree]

Aaah Grasshoppersan, Not so fastie, no can wait till 7/25! Lookie like today and Monday will be big day for Cove shareholders.

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Andrew Hobbs 13 July 2012 07:12 GMT
British regulatory body the Takeover Panel has set the close of business on 16 July as the last date for new public takeover offers for Cove Energy from suitors Shell and PTT Exploration and Production Africa.
The two companies have been competing since February for control of Cove, with PTTEP currently offering £2.40 per share compared to Shell’s £2.20.

Both offers are significantly below Cove’s 12 July closing price of £2.74.

While neither company has declared their offer final, neither has been able to win significant support for their deal, with both recording commitments of less than 4% of shares to their offers.

Deeming the situation to be a competitive deadlock, the Takeover Panel has ruled that 16 July at 5:00pm London time will be the last time a revised offer can be made, unless a third party makes a bid.

Following this date, the parties must compete against each other in an auction situation starting on 17 July – with parties compelled to react within a day of the other increasing its offer.

On the day when no subsequent increase is made, the auction will conclude, the panel said.

The Panel said its decision had been accepted by Cove, PTTEP and Shell, which yesterday increased the closing date of its offer to 25 July.

Cove’s key asset is its 8.5% stake in gas-rich Area 1, off Mozambique, which is estimated to hold recoverable gas resources of 24 trillion-50 trillion cubic feet.

It also holds a 10% stake in the Rovuma Onshore Area in Mozambique, as well as interests of between 10% and 25% in seven deep-water blocks in Kenya.

[Palm]

Tap tap goes the Tree taproot. All of this and Cove just owns minority shares of these offshore finds. Mozambique is a real prize; but this kind of bidding for such a small prize?!! Tree, does this make sense to you? So for a 25-32.5% of PRL 15 just what could happen?!!!

[Tree]

Tap tap goes the Tree taproot. All of this and Cove just owns minority shares of these offshore finds. Mozambique is a real prize; but this kind of bidding for such a small prize?!! Tree, does this make sense to you? So for a 25-32.5% of PRL 15 just what could happen?!!!

Gee duck, maybe Phil's shrewd judgement is being mistaken for hubris by the geniuses on yahoo. Huh.