An independent expert has valued the shares of takeover target Arrow Energy at between $4 and $4.40 per share, below the agreed $4.70 cash bid launched by Royal Dutch Shell and PetroChina.
Arrow released Deloitte's independent valuation to the sharemarket this morning.
The company's shares rose 4 cents, or 0.8 per cent, to $1.89 in early trade, underperforming the general market which was up 1.7 per cent.
Shell and PetroChina in March raised their offer to $4.70 a share in cash for Arrow's Australian assets plus one share in a new listed entity to be called Dart Energy, which will house the group's Asian exploration assets and some Australian assets.
Arrow, the last major Australian independently operated coal seam gas company, agreed to the sweetened bid, which amounted to a 6 per cent increase in the cash offer, following two weeks of talks with its suitors.
