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Toronto Star: Shell gets clearance for BlackRock deal

Jun. 13, 2006. 06:50 PM
CANADIAN PRESS

CALGARY — Shell Canada (TSX: SHC) said Tuesday it had received approvals from the federal industry minister and Competition Bureau for its $2.4-billion takeover bid for BlackRock Ventures Inc. (TSX: BVI).

Shell said it is encouraging BlackRock shareholders to tender their common shares soon as possible. The offer remains open until 1:01 a.m. MT on Friday, unless it’s withdrawn or extended by Shell Canada.

Under the friendly takeover deal, announced in May, Shell is offering $24 per BlackRock share — a 27 per cent premium over the May 5 closing price of $18.88 before the announcement.

Shell, an integrated energy company, has oilsands properties near the BlackRock operations in northwestern Alberta. The deal would see Shell acquire about 14,000 barrels of heavy oil output a day from BlackRock’s operations in Peace River, Alta. On the Toronto Stock Exchange, which suffered its biggest one-day drop in over two years, Shell Canada shares closed Tuesday at $38.18, down $1.08. They closed on May 5, prior to the takeover offer, at $41.

Meanwhile, BlackRock stock closed at $23.91, down six cents, on Monday with 2.2 million shares exchanged.

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