By the OGJ Online Staff
HOUSTON, Apr. 30 -- The directors of Barrett Resources Corp., Denver, Colo., have rejected Shell Oil Co.'s most recent cash tender offer as inadequate.
The Barrett board has been fighting off Shell's advances for 2 months while inviting other bids. On Apr. 26, Shell offered $60/share, up $5 from its previous offer. The higher offer would have placed the acquisition at $2.007 billion.
Barrett also suggested that Shell submit its best and final offer by May 2, the date other acquisition proposals are due.
Peter Dea, Barett's president and CEO, also responded to a request by Shell not to enter into a merger agreement that includes breakup fees for any bidder.
"In the event of a transaction with a break-up fee, the stockholders would receive the benefit of the entire consideration. Indeed, because we have pursued a process with a level playing field and because we are seeking to receive best and final proposals from all potential parties on May 2, we believe it is appropriate to consider proposals with break-up fees as an incentive to the parties to submit their best offers. Of course, what would be an acceptable amount will depend upon price," said Dea in a letter to Walter van de Vijver, president and CEO of Shell Exploration & Production Co.
