Shell sticks to $60/share offer for Barrett Resources

Shell Oil Co. said Wednesday that it would maintain its offer price of $60/share in cash for the purchase of all outstanding common shares of Barrett Resources Corp., Denver. Earlier, Barrett's directors rejected the $60 offer as inadequate. The $60 offer would have placed the acquisition at $2.007 billion.

May 2, 2001

By the OGJ Online Staff

HOUSTON, May 2 -- Shell Oil Co. said Wednesday that it would maintain its offer price of $60/share in cash for the purchase of all outstanding common shares of Barrett Resources Corp., Denver.

In reasserting its current offer price, Shell indicated in a letter to Barrett's directors that it was prepared to negotiate all terms of its proposal, including price. Shell is a wholly-owned member of the Royal Dutch/Shell Group.

Shell said it is submitting a merger agreement to Barrett Resources' financial advisors consistent with the above offer. In addition, Shell has opted not to include a breakup fee provision in its proposed merger agreement with Barrett Resources to allow for a fair and shareholder-friendly auction process.

Shell also reaffirmed that its tender offer for Barrett will remain open through May 9.

Earlier, Barrett's directors rejected the $60 offer as inadequate. Initially, Shell had offered $55 (OGJ Online, Apr. 30, 2001).

The latest offer would have placed the acquisition at $2.007 billion, plus $400,000 in Barrett debt that Shell would assume. The Barrett board has been fighting off Shell's advances for 2 months while inviting other bids.