Woodside shareholders reject Shell share buyback plan

SYDNEY, Aug 01 (AFP): Woodside Petroleum shareholders rejected Friday a US$2.7 billion stock buyback from Royal Dutch Shell following objections by large institutions wary of preferential treatment of the oil giant.
The Australian company was unable to reach the 75 per cent threshold needed for the resolution to pass, which would have allowed it to buy 9.5 per cent of its share capital from Shell, the firm said in a statement.
Following a vote at an extraordinary general meeting, Woodside said 72 per cent were in favour of the plan with 28 per cent opposed.
Shell announced last month it wanted to reduce its stake to focus its Australian growth in directly owned assets.
Shares in Woodside, which operates six of Australia's seven LNG processing plants, closed 1.41 per cent lower at $41.92.
Woodside chairman Michael Chaney said ahead of the meeting that his board "fully respects the likely outcome of the vote".
But he added the Shell buyback was the "only option" that could have helped the Anglo-Dutch firm to reduce its holdings efficiently.
"An equal access off-market buyback would involve less certainty regarding the price and quantum of the buyback depending on shareholder participation and would not provide an orderly reduction of Shell's shareholding in Woodside," Chaney said.