By the OGJ Online Staff
LONDON, Mar. 7�The outcome of Shell Oil Co.'s $2.2 billion bid to acquire Denver-based independent Barrett Resources Corp. should be known by the end of the week, Walter van de Vijver, chief executive of Shell Oil Co.'s exploration and production arm Shell E&P Co., said Wednesday.
Shell said Barrett's board had promised to respond to its proposal to acquire all Barrett common stock for $55/share "no later than Mar. 9." The offer, made on Mar. 1, represents a takeover price of $1.8 billion, along with the assumption of $400 million in debt, said Shell.
"Shell appreciates the seriousness with which Barrett's board is approaching our proposal, and we are hopeful that the board will respond favorably," said van de Vijver. "We are standing by and are ready to negotiate a merger agreement promptly so that Barrett shareholders can consider our offer."
Van de Vijver stressed that "in the absence of a positive response" from the Barrett board, Shell would nonetheless launch a fully funded all-cash tender offer for outstanding shares in the company.
Taking over Barrett would give Shell an "immediate material presence" in the Rocky Mountain region, believed to be the second largest natural gas basin in the US, as well as "significant additional natural gas production and reserves," said van de Vijver.
"This transaction will strengthen and diversify our asset portfolio and enhance Shell's natural gas position with tangible growth opportunities outside our existing core areas," he added.
Barrett's assets are primarily in Colorado, Wyoming, Utah, Kansas, Oklahoma, New Mexico, Texas, and the Gulf of Mexico.
