BHP Billiton played down speculation it was in talks to acquire a cornerstone stake that could be worth $10.3 billion in Australia's largest oil and gas firm, Woodside Petroleum, from Royal Dutch Shell.
BHP Billiton, widely rumoured to be considering a takeover of Woodside, said in a short statement that there was no basis for the market talk, which has centred on BHP acquiring Shell's 24.3 per cent stake as a step towards a full takeover.
Woodside shares surged to a 15-month high of A$50.85 before giving up all their gains on BHP's denial.
At the day's highs, the 24.3 per cent stake would be valued at about A$9.8 billion.
"BHP Billiton advises that the market is currently fully informed of all material information and is not aware of any basis for the market speculation," BHP said..
Earlier, Western Australia's state premier said he was aware that talks had been going on concerning BHP's interest in Shell's stake in Woodside but did not elaborate.
Bankers says there are continuous low-level talks between all three parties - BHP, Shell and Woodside - and doubt these have yet progressed to the stage where a deal is imminent.
Western Australian premier Colin Barnett spoke out against any takeover of Woodside.
"Hands-off Woodside," he bluntly told an energy conference in Perth, adding that the industry would lose out if Woodside was taken over though he did not elaborate.
"I don't care what happens with the 24 per cent particularly, but I would just urge you 'hands off Woodside' - not a good move for your industry. There are more important things to do: develop new fields, find gas, find oil, find customers, just keep your hands off Woodside," Mr Barnett said.
Shell's Australian boss was earlier reported to have said that no commercial discussions with BHP were underway.
The Sunday Times and the Australian Financial Review both said BHP was pursuing the stake, without citing sources.
Shell Australia country chief Ann Pickard was quoted by local newspapers today as saying the there were no "commercial" discussions on its stake in Woodside and said there was no hurry to do a deal.
Reuters
