Arrow Energy gets $3 billion takeover bid

[March 08, 2010]  SYDNEY (AP) -- Arrow Energy Ltd. said Monday that a company jointly owned by Royal Dutch Shell and PetroChina has sent it a takeover bid worth $3.3 billion Australian dollars ($3 billion).

Shell Energy Holdings Australia Ltd. confirmed it was considering acquiring the Australian company.

Brisbane-based Arrow said in a statement to the stock exchange it had received a nonbinding indicative proposal of AU$4.45 per share plus a share in a new entity comprised of Arrow's international business.

Arrow was advising shareholders to take no action at the moment, and said the company had appointed financial and legal advisers to look at the proposal.

Shares in Arrow Energy surged more than 40 percent to AU$4.98.

Arrow Energy is an integrated energy company focused supplying coal seam gas to eastern Australia and Asia. It claims to have the largest coal seam gas reserves in Queensland state.

The company had been planning to list 20 percent of its Arrow International arm, retaining 70 percent, with the remainder already held by Royal Dutch Shell.

[Associated Press]

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