By Elizabeth Fry in Sydney
Published: March 4 2009 02:00 | Last updated: March 4 2009 02:00
BG Group has moved a step closer to acquiring Pure Energy Resources, the Australian coal seam gas explorer, by winning approval for its A$1bn (US$640m) takeover offer from Royal Dutch Shell.
Shell said yesterday that it would accept BG’s A$8.25 per share all-cash bid for its 11.2 per cent holding “in the absence of a superior offer”.
Winning the Shell stake raises BG’s holding in Pure to 40.7 per cent and removes an important obstacle to the UK group’s ability to expand its Australian coal bed methane business.
BG faces competition from Arrow Energy, the Australian gas producer, which launched a friendly cash and share offer for Pure Energy in December.
BG launched an initial offer that valued Pure at A$796m but, after a brief bidding war with Arrow, raised it last week to A$1bn.
This latest raise was made despite BG already having tabled the largest offer, its A$8 per share having trumped Arrow’s bid of A$3 cash plus 1.57 of its shares for each Pure share.
Analysts said that BG’s bid might encourage Shell to make an offer for Arrow, its joint-venture partner in Queensland’s coal seam gas (CSG) business.
The two companies formed the partnership last year to commercialise Arrow’s CSG reserves through a proposed liquefied natural gas development in Queensland
With a 20 per cent stake in Pure, Arrow could still block BG’s takeover, which is subject to the company acquiring 90 per cent of the Brisbane-based group
Arrow’s chief executive for Australia, Shaun Scott, was not available for comment yesterday, but said last week that the company was still considering “all options”.
BG, Shell and Arrow are seeking more reserves to feed proposed liquefied natural gas projects in Queensland that may meet rising demand in North Asia for cleaner-burning fuels.
The country’s reserves of coal bed methane – natural gas found in coal seams – have been a focus of growing international interest.
Pure yesterday reiterated a recommendation from its independent directors that shareholders should accept BG’s offer.
“Pure’s share price is likely to fall if BG’s offer is not successful,” Robert Day, Pure’s chairman, said in the document.
BG’s bid for Pure follows its successful A$5.6bn bid for Queensland Gas Company and a failed attempt to wrest control of Origin Energy, two other Australian companies with CSG assets.
Copyright The Financial Times Limited 2009
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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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