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Financial Post: Shell wins right to buy out Shell Canada shareholders

Monday, April 02, 2007

LONDON — Royal Dutch Shell Plc. has won the right to buy out the remaining minority shareholders in Shell Canada, after securing more than 90% of the outstanding shares in an extended share offer, the oil major said on Monday.

Shell Canada Ltd. shareholders holding 94.5 percent of the shares Shell did not already own tendered their shares at the offer price of C$45 per share by the end of the extended offer period on March 30, Shell said.

The result represents a defeat for those shareholders, including many hedge funds that had hoped Shell would make a higher offer.

In October, Hague-based Shell made a $40 per share offer for the 22% of Shell Canada it did not already own and in January increased this to $45 per share, valuing the minority stake at $8.7-billion.

Just over half the minority shareholders accepted this by the end of the first offer period on March 17, and the offer was extended.

Shell Canada is a leader in oil production from bitumen-soaked sand deposits, a resource Shell is betting on to help it turnaround a disappointing record in recent years at adding new reserves.

© Financial Post 2007

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