.jpg)
1 hour ago
2
Article content
(Bloomberg) — Santos Ltd. shares dropped sharply after a group led by Abu Dhabi National Oil Co. walked away from a $19 billion takeover bid, raising questions over the Australian gas producer’s next steps and the future of Chief Executive Officer Kevin Gallagher.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Shares in the gas producer fell as much as 14% at the start of Sydney trading, their biggest intraday decline since March 2020, wiping out more than A$3 billion ($2 billion) from the company’s value.
Article content
Article content
Article content
A group led by Adnoc’s XRG unit dropped its proposal Wednesday after failing to agree on key terms, ending months of talks. It marks the latest setback for Gallagher, who has rebuffed several approaches in recent years while pushing an aggressive plan to boost output — frustrating some investors seeking higher returns instead.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Santos shareholders will be “bruised” by the sudden withdrawal of the offer and will question the negotiation tactics used in recent weeks, Jarden Group Ltd. analysts Nik Burns and Joshua Mills-Bayne wrote in a note Thursday.
Article content
Santos has struggled for years to find a suitor. In 2018, the Adelaide-based company spurned advances from US-based Harbour Energy Ltd., while talks with Woodside Energy Group Ltd. broke down last year.
Article content
Santos said in a filing to the Australian Stock Exchange Thursday that its board had raised concerns about delays in reaching a so-called scheme implementation agreement to protect shareholder value and share risks, reiterating comments made the night before.
Article content
Adnoc’s decision was strictly commercial and reflected differences over valuation and tax, people familiar with the matter said. Reports of a leak at the Darwin LNG plant weren’t disclosed until late in the process, they said.
Article content
The collapse also followed opposition at home, with the Offshore Alliance — a group representing two major labor unions — urging the government this week to block the sale to Adnoc and keep Santos “in Australian hands.”
Article content
—With assistance from Dan Murtaugh.
Article content
(Updates with share price from first paragraph)
Article content
English (US)