11/02/2009 - 17:05

Arrow lifts Pure Energy offer to $890m

11/02/2009 - 17:05

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The takeover battle for Pure Energy Resources has escalated with first suitor Arrow Energy trumping BG Group's $796 million offer with an $890 million cash and scrip bid.

Arrow lifts Pure Energy offer to $890m

The takeover battle for Pure Energy Resources has escalated with first suitor Arrow Energy trumping BG Group's $796 million offer with an $890 million cash and scrip bid.

Arrow said Pure's independent directors have unanimously recommended the new offer, subject to there being no superior proposal.

The offer now consists of $3 cash and 1.57 Arrow shares for every Pure share, valuing the offer at $7.16 per share.

Arrow said its latest offer is 21 per cent higher than the original bid of $2.70 cash and 1.21 shares, and has also declared the offer unconditional.

Earlier this week, acquisitive BG launched a takeover offer for South Perth-based Pure, offering $6.40 cash for each share.

UK-based BG acquired coal seam gas producer Queensland Gas Company for $4.88 billion last year after losing out in its attempt to buy Origin Energy for $13.8 billion.

BG already holds a 10 per cent stake in Pure. BG's offer is subject to Foreign Investment Review Board approval and has a 50.1 per cent minimum acceptance condition.

Arrow said today it will accelerate payment terms, with shareholders to receive the cash and shares within five business days.

The offer will open tomorrow.

Shares in Pure closed down four cents to $6.72 today.

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