THE WALL STREET JOURNAL
FEBRUARY 2009
By ROSS KELLY
SYDNEY — U.K.-based BG Group PLC Monday launched a rival takeover bid for Pure Energy Resources Ltd., opening another front in the battle for Australia’s rich coal seam gas reserves.
The 796 million Australian dollar (US$533.3 million) all-cash bid trumps an existing cash and share offer from Arrow Energy Ltd., which is Royal Dutch Shell PLC’s joint venture partner in Australia.
Pure’s board, which has previously endorsed Arrow’s offer, said it is reviewing BG’s bid and urged its shareholders to take no action until it makes a further recommendation.
A host of Australian oil and gas companies and their newfound international joint venture partners are competing for CSG reserves. They need them to feed four separate liquefied natural gas export terminals, planned to be built at the port town of Gladstone on the coast of Queensland state.
In response to BG’s bid of A$6.40 cash per Pure share, Arrow stood by its original offer of A$2.70 cash plus 1.21 of its shares for every Pure share, but wouldn’t say whether it was prepared to raise it.
At the close of trading Monday, Arrow’s offer was valued at A$5.70 a Pure Share, or A$709 million.
“We have presented a compelling offer to Pure shareholders, including Arrow scrip, which is significantly undervalued, particularly if you use the BG offer for Pure as a valuation guide,” said Arrow Managing Director, Nick Davies.
BG said its offer represented a 19% premium to the implied value of Arrow’s offer at the close of trade Friday, and that it has already acquired a relevant interest in Pure of about 10%. That’s enough to block Arrow’s bid for Pure, which has a 90% minimum acceptance level.
Arrow already owns 20% of Pure and noted that BG’s offer has a 50.1% minimum acceptance level and would need Foreign Investment Review Board approval.
Despite the rival bid from BG, Arrow shares jumped 12% to A$2.48 compared with a 1.1% rise in the broader Australian market as investors speculated that it too could become a takeover target. Pure shares are in a trading halt and last traded at A$5.28.
Write to Ross Kelly at [email protected]
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: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
