BHP hoses down Woodside takeover speculation

An article in this morning's Financial Review reported that BHP has been holding

talks with Royal Dutch Shell about acquiring its 24.3 per cent stake in Woodside, as

a precursor to a full takeover offer by BHP for the Western Australian-based oil and

gas producer.

BHP has responded to the speculation in a release to the ASX, saying that "the

market is fully informed of all material information", and that BHP is not aware of

the basis for the takeover speculation.

BHP Billiton also noted that it has not been relying on the confidentiality

exception to disclosure obligations in the ASX listing rules.

The statement saw Woodside shares plummet from a high of $50.85 earlier this

morning, to be only 0.5 per cent higher for the day at $47.49 by 12:57pm (AEST).

In contrast, BHP Billiton shares had surged 3 per cent higher to $49.20, with most

of the gains coming after the company's statement was released.

Woodside has not made any comment.

However, Western Australian Premier Colin Barnett has warned BHP not to consider a

takeover.

"Woodside seems to be under siege. Nothing new in that, it has happened a couple of

times before and I am not an advocate or defendant for Woodside but can I just make

the observation. If Woodside were taken over your industry would lose something, you

would lose a closeness to government that you would probably not be able to

recreate," he cautioned.

"I just urge you, hands off Woodside. Not a good move for your industry. There are

more important things to do - develop the new fields, find gas, find oil, find

customers - just keep your hands off Woodside."