Woodside subsidiary foregoes US producer takeover bid

Woodside Petroleum Ltd subsidiary ATS Inc has made good on a promise not to extend its $1.16 billion hostile takeover bid for US-based oil producer Energy Partners Ltd, after failing to reach the minimum acquisition level of 50 per cent.

ATS has not accepted any of the shares tendered, instead returning all tendered shares to shareholders and withdrawing its solicitation to remove the EPL board of directors and replace them with its own nominees.

ATS President Mark Chatterji said on Tuesday that ATS had unsuccessfully attempted to obtain confidential data from EPL to assist with a revaluation of the $US23 per share offer price.

"EPL was not willing to provide such access to ATS unless we first agreed to extend our tender offer into 2007," Mr Chatterji said.

Woodside had owned a 4.5 per cent stake in EPL before making the bid in August, though a company spokesman would not speculate on whether Woodside would retain it following today's news.

The company retained an active mergers and acquisitions team that was constantly canvassing for opportunities, the spokesman said.