The board of directors of Barrett Resources has reviewed, considered and rejected Shell Oil Company’s unsolicited proposal.
Shell had previously proposed to acquire all of the outstanding shares of Barrett’s common stock at a price of $55.00 per share in cash.
The board of Barrett has authorised its management to pursue strategic alternatives, including seeking proposals from a number of qualified parties, rather than commencing negotiations solely with Shell under what it called ‘artificial deadlines that only serve Shell’s interests’.
According to the company, ‘the process initiated by the Board will be designed to facilitate a full appreciation of the value of Barrett’s assets and to create a competitive situation in which Shell is being invited to participate along with others’.
Barrett believes that, in properly valuing the company, Shell and other potential parties would find it highly important to consider confidential, nonpublic information regarding the company’s focused natural gas in the Rocky Mountain region.