Shell wants to work it out

Tuesday 17th October 2000

Shell New Zealand has said it remains optimistic that the proposed Fletcher Energy takeover can be completed after the Commerce Commission released its findings last night.

Published on the Commerce Commission's website http://www.comcom.govt.nz/ the 72 page report details exactly why the takeover was not allowed. Shell Chairman and CFO, Ed Johnson, said that his company will be considering in detail the Commerce Commission's findings over the coming days, and will look to meet with Commission representatives to clarify key issues.

However, Shell will not be commenting any further on the report due to "the extreme market sensitivity and media speculation" regarding the transaction. The company did however stress the potential value of the deal for Fletcher Energy shareholders and for New Zealand in general.

"This commitment represents a massive investment in the infrastructure of New Zealand, and will ensure that energy supplies are further developed and secured for the future. We are committed to safeguarding consumer interests, and therefore remain hopeful that the transaction can be completed according to plan," Mr Johnson said.

Fletcher Energy shares reacted moderately well to the news, tracking upwards in the early afternoon.

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