Origin spurns BG’s A$13.6bn takeover bid
By Russell Hotten, Industry Editor
Australian gas company Origin Energy has walked out of takeover talks with Britain’s BG Group, saying it believes its assets are worth more than first thought.
BG said yesterday it was “surprised” by Origin’s decision to reject its improved A$13.6bn (£6.3bn) offer, as the two were “putting the final touches” to a deal.
The UK company said it was “considering its next move”, and there is growing speculation that others are talking to Origin, including Royal Dutch Shell.
BG declined to discuss raising its offer, but said in a statement: “Until Thursday, negotiating teams from the two companies were actively engaged in putting the final touches to the agreement governing the transaction. BG Group was therefore surprised to learn, earlier today, that Origin had broken off discussions.”
Origin said BG’s offer undervalued the company, adding that its coal-seam gas reserves were worth A$16bn alone. Origin cited a deal this week between Malaysia’s Petroliam Nasional and Santos, which reflected the booming price of gas assets.
The company wanted Origin to supply liquefied natural gas (LNG) to buyers in northern Asia, where prices have reached almost double the US benchmark.
Origin said that it had approaches from other “very credible” companies. “The company remains open to any proposal including from BG,” Origin managing director Grant King said yesterday. Origin would be “very happy” to consider an LNG joint venture with BG at the right price..
BG plans its own A$8bn LNG plant near the central Queensland port town of Gladstone, seeking to convert the fuel trapped in the state’s abundant coal reserves into LNG..
BG’s improved offer was a 48pc premium to Origin’s closing price of A$10.47 on April 29, the day before the original proposal was unveiled. Jason Kenney, analyst at ING, said: “Some people will be relieved because it won’t put pressure on BG’s gearing… but others will be disappointed if BG saw this as important to building critical mass,” he said. BG shares closed down 28p at £12.66.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/05/31/cnorigin131.xml
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
MORE DETAILS:
A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
