PTT’s offer for Cove Energy gets the cold shoulder, market waits for Shell move

11-Jul-2012 Intellasia | Proactive Investors UK | 7:01 AM

Cove Energy (LON:COV) shareholders are decidedly lukewarm about the offers that have been tabled for their company.

After giving Shell (LON:RDSB) the cold shoulder last month, – their counterbid priced at 220 pence a share received acceptances of just 4.84 percent – PTT, the exploration arm of Thailand’s National Oil Company received even less enthusiasm.

Even though their offer is priced at 240 pence and is endorsed by Cove’s management, PTT could today only report a take-up of a measly 0.25 percent as of July 6. The offer has been extended until July 13.

Cove’s main asset is its 8.5 percent stake in the world class Rovuma Basin offshore Mozambique, where huge gas discoveries have been made recently. And continued drilling success in Mozambique is showing the vast potential of the asset.

PTT and Shell have been locked in a battle over Cove since earlier this year.

Shares in Cove have for the last weeks consistently traded around 10 percent above PTT’s offer, with market participants seemingly holding out for a higher offer from Shell.

Under UK takeover regulation, Shell has until July 17 to increase its offer.

Cove Energy was last trading at 271. 63 pence.

http://www.proactiveinvestors.co.uk/companies/news/45220/ptts-offer-for-cove-energy-gets-the-cold-shoulder-market-waits-for-shell-move-45220.html