Woodside slips as talk increases of US buy
Author: Barry FitzGerald
Date: 15/10/2002
Words: 224
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Publication: Sydney Morning Herald
Section: Business
Page: 23
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Woodside Petroleum dipped below $12-a-share yesterday as the market braced
itself for the possibility of a $1 billion share issue in support of a $1.6
billion United States acquisition. The stock closed down 19c at $11.90,
continuing the trend of share price weakness in recent trading days because of
the equity issue/acquisition talk and oil price softness.
Led by managing director John Akehurst, the management team is believed to
have presented the case for the equity issue/acquisition to the board in Perth
yesterday.
Apart from the economics of the proposal, the board will weigh up the likely
response from Woodside's 34 per cent shareholder, Shell.
It was Shell's concern about Woodside's ambitions to expand into overseas
exploration and production that was the key factor in the Anglo-Dutch giant's
takeover bid for Woodside last year.
The Federal Government rejected the bid on national interest grounds.
Relationships between Shell and Woodside have improved since but would be tested
by an acquisition Shell did not support.
Market speculation is that Woodside is close to locking up a deal with the
controlling shareholders in Denver-based Westport Resources, a $US900 million
($1.65 billion) company with proven reserves of more than 160 million barrels of
oil equivalent in the onshore and offshore Gulf of Mexico and the Rocky
Mountains.
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