Shell Bids on Barrett for More U.S. Gas

Royal Dutch/Shell, the world’s second-largest oil company, made a grab for more exposure to the booming U.S. natural gas market with an unsolicited bid of $1.8 billion for Barrett Resources Corp. The Anglo-Dutch company said it had approached the Denver-based gas producer a week ago and will wait until Friday before going hostile with a cash tender offer. Barrett told Shell that its board would consider the proposal at its regularly scheduled meeting this week and would respond no later than Friday. Barrett officials did not return telephone calls. The acquisition would give Shell its first presence in the Rocky Mountain region, the second-biggest natural gas basin in the United States. The $55-a-share proposed bid is a 24% premium to Barrett’s share price Feb. 28, the day before Shell made its offer. News of the offer sent Barrett shares up $15.49, or 34%, to close at $61.11 on the New York Stock Exchange.