Suitor stalemate has Cove diving
Tuesday 17 July 2012
Shares in Cove Energy, the Mozambique-focused oil explorer being fought over by Shell and Thailand's PTT, tumbled by 14 per cent yesterday as both suitors ruled out raising their bids.
After five months without landing a knockout bid, the Takeover Panel on Friday set last night as the deadline for the suitors to raise their cash offers.
Neither party has done so, giving investors a choice between Shell's £1.12bn bid and PTT's higher offer of £1.22bn, or 240p a share. Because the bids have been made in cash, rather than shares, analysts said they expected a clear majority to back the PTT offer.
Shell's failure to raise its bid disappointed the market, which had been expecting Cove's price to be bid up further, possibly to as high as 320p a share.
Cove's shares fell by 37.5p to close at 238p yesterday, indicating the market believes a deal is likely – but not definitely – going to be struck with PTT. Shell said it did not raise its offer because it simply did not believe Cove was worth any more.
Missing Malaysia Airlines Flight MH370: Acclaim for retired Australian defence chief Angus Houston who is leading the search for the airliner
South Korea ferry: Four dead and almost 300 missing as mass rescue gets underway
Malaysia Airlines MH370 co-pilot's phone 'was on and made contact with network tower' 30 minutes after plane turned around
Oscar Pistorius trial: Reeva Steenkamp told athlete she 'loved him' for first time in Valentine's Day card
Lunar eclipse 2014: Images of the spectacular 'blood moon'
David Cameron: 'Jesus invented the Big Society – I'm just continuing God's work'
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
US Navy christens huge $3 billion destroyer ship USS Zumwalt that appears as a fishing boat on enemy radar
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage on Have I Got News For You: Ukip leader ridiculed over expenses and party 'fruitcakes'
- 1 Refugee facing deportation from Sweden saved by fellow passengers refusing to let plane leave
- 2 Naked yoga: the bare truth - it's already big in the US, and has now landed here
- 3 Man on a leash in Farringdon, London: Mystery of 'walkies' solved
- 4 24 people applied for the 'world's toughest job', here are their interviews
- 5 Drugs giant GlaxoSmithKline bribed doctors to boost sales, says whistleblower
iJobs Money & Business
£40000 - £50000 per annum + BONUS + BENEFITS: Harrington Starr: A leading, Cit...
£35000 - £50000 per annum + Bonus + Benefits: Pro-Recruitment Group: You must ...
£45000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: Corporate Acti...
£350 - £400 per day: Harrington Starr: An opportunity has arisen at a FCA regu...