Woodside Petroleum advised the Australian Stock Exchange this morning that it was withdrawing its proposal to merge with Oil Search (OSL).
Woodside made the offer on September 3 and it drew much attention in the share trading fraternity, with OSL seen by many as a well managed enterprise with a strong asset base, including its share of the PNG LNG venture.
Woodside made the offer through a scheme of arrangement.
The company announced today that “it will not pursue any alternative transactions to combine the businesses”.
In response, OSL’s managing director Peter Botten said “as previously advised, the indicative Woodside proposal grossly undervalued the company’’.
“Oil Search remains focused on delivering value for its shareholders, by continuing to produce from its low cost assets and the development of its world class growth projects.”
Woodside in September made an $11.6 billion offer for Oil Search shares which the PNG government has a 10 percent stake in it.
Oil Search was trading at $6.34 today after suffering along with other oil shares from global over supply.