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Oil Search rejects Woodside's $8B takeover plan

A Shell Oil facility in Carson, California
Mike Blake | Reuters

Oil Search on Monday rebuffed an all-share $8 billion takeover proposal from Woodside Petroleum, saying the proposal was "highly opportunistic and grossly undervalues the company."

Woodside, Australia's biggest energy company, last week sought exclusive talks with the Papua New Guinea-focused oil and gas producer on a one-for-four share offer, conditioned on support from key stakeholders, including the PNG government.

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"If any proposals are tabled in the future that reflect compelling value for Oil Search shareholders, we will engage on them," Oil Search Chairman Rick Lee said in a statement to the Australian securities exchange. "Clearly this proposal falls well short of that test."