RIL is Likely to Challenge Chevron's Bid for Atlas Energy

Reliance Industries (RIL) is likely to challenge Chevron's bid for Atlas Energy, according to a letter disclosed by the U.S. natural gas producer in a filing with the US Securities and Exchange Commission. The company also stated that it would like to evaluate options including whether it could be able to create incremental value for Atlas.

Reliance had, in January 2011, sent a letter to Atlas Energy board asking why it was not given an opportunity to bid for Atlas Energy in spite of its interest in the company and substantial financial resources.

The company had last year, agreed to pay $1.7 billion to Atlas to form a joint venture and own a 40 percent stake in Atlas' Marcellus Shale operations in the eastern United States. Chevron, in November, announced its plan to buy Atlas for $3.2 billion.

The shareholders of Atlas Energy have also sued its board of directors in the American courts for signing a ???draconian??? merger deal which gives an unfair advantage to Chevron to match any offer by Reliance Industries should the Ambani company decides to make a counter bid. It is now pending in a Western Pennsylvania court.

Reliance is looking to invest in new areas such as shale gas as it seeks a foothold overseas and seeks to expand its businesses beyond petrochemicals, refining, oil and gas exploration, and retail.

Get Daily Tips Directly on Email


Blogger news

What We Provide

We give Intraday Stock Tips, Markets Outlook, Nifty Tips Tomorrow, Futures Options Tips, Bank Nifty Tips, MCX Commodity Tips..

Free Trial Tips On Mobile By SMS

Subscribe us to get FREE TRIAL in stocks & commodity tips on your mobile by sms. We offer 2 days Free Trial for stock tips and commodity tips....... 2 Days Free Trial

Classified Ad Listing

Get Daily MCX and NCDEX tips with more than 90% accuracy on your MOBILE phone by SMS. We provide sure shot MCX and NCDEX Commodity tips with atleast 3-5% return on an intraday trading basis.
Free Trial


This blog is not intended as professional advice. The author disclaims any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.