Shell Takes Bid for Barrett to Shareholders

Royal Dutch/Shell Group took its $1.8-billion hostile bid for Barrett Resources Corp. to the U.S. natural gas company’s shareholders, but chose not to raise a bid that was formally rejected last week. Although Barrett said its board would meet to consider the tender offer and make a recommendation to shareholders within 10 business days, the company has already invited competing bids after rejecting the same $55-a-share offer from Shell last week. Shell’s bid is backed by the billions of petrodollars that make it the world’s second-largest oil company and more than 100 times larger than Denver-based Barrett. The Anglo-Dutch oil giant said its bid represented “full and fair value” at a 24% premium to Barrett’s $44.25 stock price Feb. 28, the day before its letter to Barrett’s chief executive. Shell’s tender offer is on condition it acquires at least a majority of Barrett’s outstanding shares. The offer will expire at midnight EDT April 6. Barrett’s shares soared last week well above Shell’s $55 marker, closing Friday at $62.52. The company’s shares Monday closed off 52 cents at $62 on the New York Stock Exchange.