SYDNEY--A deal worth US$2.68 billion for Woodside Petroleum Ltd.
to buy most of Royal Dutch Shell PLC's interest in the company has
been cast into doubt after a large number of investors opposed the
proposal.
Woodside said Thursday that 71.3% of its shareholders who voted
by proxy have approved the deal, below the minimum threshold for
approval of 75%.
The Australian oil company said around 59% of its shareholders
have voted by proxy, meaning there is still an opportunity for the
deal to get over the line at a shareholder meeting in Perth on
Friday.
The 41% of shareholders that haven't voted can do so at the
meeting, but voting isn't compulsory.
"The general meeting will provide shareholders with the
opportunity to vote in person in order to determine a final
outcome," Woodside said in a statement.
Both companies agreed in June that Woodside would buy back a
9.5% interest in the company held by Shell, pending shareholder
approval. The plan, however, drew scorn from some Woodside
investors aggrieved that they wouldn't get to participate in the
buyback and access the related tax credits.
The buyback, combined with Shell's sale in June of another 9.5%
stake to institutional investors, would see the Anglo-Dutch company
cuts its Woodside stake to around 4.5% from 23.1%
Write to Ross Kelly at ross.kelly@wsj.com
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