Shell is paying a 95.6% premium to the closing price on January 4th, the date on which Cove announced that the company would be sold. Thailand’s PTTEP PLC had topped Shell’s original bid for Cove with a bid of $1.8 billion, the same amount Shell has finally agreed to pay for Cove. PTTEP has indicated only that it is considering its options.
Under the terms of the deal, Cove may seek other bids, but must pay a break-up fee of about $18 million should it choose to accept one.
Paul Ausick
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
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