B.P. bid rejected

Press, 26 December 1987, Page 9

B.P. bid rejected

NZPA-Reuter London The British Government said on Wednesday it would try to stop oil giant British Petroleum Co (BP) taking control of North Sea oil producer Britoil Pic. A Treasury statement reaffirming it intention to use its special “golden share” in formerly state-owned Britoil came hours after the Panel on Takeovers and Mergers cleared BP’s £2.27 billion (SNZ4.I3 billion) bid for the firm. “The Government confirms it intends to use its share in Britoil to prevent any bidder from gaining control of the Britoil board,” the Treasury said. That “golden share” gives the Government voting con-

trol over Britoil even if someone else owns a majority of the company’s ordinary shares, a position that usually ensures control.

The takeover panel ruling that B.P.’s offer could go ahead was the first time the independent referee body had looked at an acquisition involving a company with a golden share. Britoil, sold off by the Government between 1982 and 1985, is one of several former state firms in which the Government retained one special share allowing it to outvote all other stockholders. 8.P., the world’s third largest oil firm, has been battling with United States oil giant Atlantic Richfield Co (ARCO)

for Britoil shares. B.P. has 29.9 per cent of Britoil. ARCO, which raised its stake in Britoil to 19.2 per cent before the panel met on Tuesday, has said it may bid for Britoil as a “white knight” to protect the company from B.P. ARCO also wants to take control of 49.9 per cent of Britoil in return for giving it oil and gas interests outside the United States. In a related development, the Department of Trade an<| Industry said it was reviewing the takeover panel’s decision. Oil analysts said it was possible the Government would refer the takeover bid to the Monopolies and Merger Commission, which would render the bid invalid until a ruling was made.