If AOE stick to their guns, then they could probably squeeze...

If AOE stick to their guns, then they could probably squeeze more out of the big 2!! Atleast for now QLD's Premier isn't complaining. The state govt will still get its royalty from any owner, big or small.

Here's some snippets from
The Australian....


Deutsche Bank analyst John Hirjee said a lack of bidder tension could make it hard for Arrow to get Shell and PetroChina to boost their bid.

Arrow's biggest shareholder, New Hope Coal, which holds 16.7 per cent of the company, had not been involved in the discussions, its managing director Robert Neale said yesterday. He said no decision had been made to sell its stake in Arrow and that it would wait for more information.

Arrow advised shareholders to take no action.

Citi and UBS are advising Arrow. Rothschild is advising Shell and Morgan Stanley is advising PetroChina.

Queensland Premier Anna Bligh welcomed the takeover bid, saying that Shell would be in a better position to accelerate its LNG plans if it had Arrow's deposits.

"Obviously this is a matter for commercial partners to decide, but the Queensland government would welcome a larger company with a stronger contractual basis for its investment, being in a position to then accelerate its development here in Queensland," Ms Bligh said.