Setback spurs Peak to lift bid

By PAULA OLIVER

Peak Petroleum increased its offer for Fletcher Energy last night after the High Court at Auckland ruled against its attempt to postpone a crucial shareholders' meeting.

The new offer of $US3.85 a share is 15USc higher than Peak's original bid and 30USc higher than an improved offer from Royal Dutch Shell and Apache Corporation.

Shareholders are scheduled to vote on the Shell/Apache offer on Tuesday.

Greymouth Petroleum, which leads the Peak consortium bidding for Fletcher Energy, yesterday asked the High Court to delay the Fletcher Challenge meeting to give shareholders time to evaluate their proposal.

It also asked for immediate access to the books for due diligence.

Greymouth's lawyers argued that Tuesday's meeting could feasibly be put off until March 23 - the expiry date of Shell's offer.

The request was made on the basis that Greymouth is a shareholder, and it had the written support of 6 per cent of Energy's shareholders.

If a March 23 date could not be achieved, Greymouth at least needed a postponement until March 13 to allow time for a significant publicity campaign.

Fletcher Challenge lawyers argued that a March 23 date would not allow sufficient time to finalise the Shell deal before it expired.

It would be difficult for Greymouth to complete due diligence before March 13, so a change to that date would see the company promoting a proposal no different to its present status.

Justice Noel Anderson refused both Greymouth requests. He said the issue was for shareholders to decide, and ruled that the meeting would go ahead next Tuesday.

After increasing its offer, Peak Petroleum again appealed for a postponement of the meeting and access to Energy's books to begin the due diligence process.

Last night, Fletcher Challenge confirmed that the vote will go ahead as planned.

A spokeswoman said allowing access to Energy's books was still being debated, but he expressed doubt that such access could affect the outcome of Tuesday's meeting.