Goldman Has Doubts About Deal For Woodside

Woodside Petroleum, Australia's second-largest oil and natural gas producer, saw its shares perk up on Friday on the renewal of an old rumor and one that Goldman Sachs GS has its doubts about: That a suitor is preparing to make a move on Woodside. The scuttlebutt started up again as Royal Dutch Shell RDS, Europe's largest oil company, said it is preparing to divest its 24% stake in Woodside. That announcement was made last year and prompted speculation that the buyer of Shell's stake could be a potential acquirer of Woodside. BHP Billiton BHP, the world's largest mining company, has been the name most linked to Woodside regarding a takeover and that rumor was swirling following a $9 billion trade in the forex market that prompted some traders to speculate that the trade was tied to BHP. Goldman doesn't think so. "Who in their right mind would buy the currency before they have launched a bid given the huge time lag that usually exists between a bid and final completion?," Goldman said, according to Dow Jones. Shell had previously thought to be a potential buyer for Woodside until it announced it would sell its stake in the company. Deutsche Bank said the most likely outcome for Shell's 24% slice of Woodside is that it ends up in the hands of a "strategic buyer," according to Bloomberg News.