Fletcher vote gets green light

By Phil Boeyen, ShareChat Business News Editor

Tuesday 6th March 2001

The vote to sell Fletcher Energy (NZSE: FEG) is set to go ahead this afternoon after Shell's rival bidder, Peak Petroleum, had a legal appeal against the vote turned down.

Peak was appealing against a decision in the High Court in Auckland last Friday which had not supported the bidder's attempt to get the vote delayed and to be allowed to begin due diligence on FEG.

Fletcher executives will be breathing a sigh of relief that more than a year of work for the separation of its letter stocks can finally go to the vote.

Shell and Apache say they are also pleased with this morning's court decision. Shell chairman, Ed Johnson, says his company has always believed that today's shareholder meeting was the proper place for this decision to be made.

"We remain confident that Fletcher Challenge shareholders will accept our offer. It is rock solid, highly attractive and guarantees that shareholders will be paid in full by the end of the month."

Mr Johnson says Shell's offer is not only the best for shareholders and Fletcher Challenge employees, but also for New Zealand.

"Shell is making a commitment to create new opportunities. Fletcher Challenge Energy has done a great job to develop New Zealand's energy resources to this stage. Shell will take that development to the next level by using its expertise and resources."

Fletcher has been recommending Shell's offer, which includes a cash component of US$3.55. Peak has offered a similar deal to Shell but cash of US$3.85, however its offer has not yet been formalised and is subject to a number of conditions.

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