Reuters: Shell shortlists LPG bidders, may sell unit in parts: Sunday 15 January 2006

Sun Jan 15, 2006 4:04 PM ET

LONDON, Jan 15 (Reuters) - Oil group Royal Dutch Shell Plc (RDSa.L: Quote, Profile, Research) has shortlisted bidders for its liquefied petroleum gas (LPG) division and may sell the unit in parts rather than outright, as it had earlier planned, a spokeswoman said on Sunday.

In December, the Anglo-Dutch firm received "a large number of bids" from a range of trade buyers and private equity firms for the unit, which analysts said could be worth more than $2 billion.

"We expect to be in discussions with the selected bidders over the coming weeks and we will then take a decision if the values offered are sufficient ... We would expect to conclude during the first half of 2006," the spokeswoman said.

"Various sale options are being pursued including selling the business in more than one transaction."

Spanish oil firm Repsol YPF (REP.MC: Quote, Profile, Research) entered a bid, a spokeswoman said, but she was unable to confirm whether the firm made the shortlist.

Industry sources had expected French oil firm Total SA (TOTF.PA: Quote, Profile, Research) to participate in the sale but a spokeswoman said the firm did not comment on such matters.

Bankers had said Total could face antitrust issues because Shell's LPG unit was very active in France, where Total had a significant LPG presence.

Shell's LPG business is the second largest-LPG distributor in the world and has earnings before interest, tax, depreciation and amortisation (EBITDA) of around 200 million euros.

(Additional reporting by Adrian Croft in Madrid)     

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