Woodside Petroleum shareholders have blocked the firm’s planned $2.7billion buyback of stock from Shell.
The move was supported by 72% of stockholders – short of the majority 75% turnout needed to process the transaction.
The rejection came on the grounds of favourism towards the Dutch major, as the deal would give Shell access to $930million in tax credits coveted by Australian investors.
Some of the shareholders also thought the buyback did not treat all stakeholders equally.
Shell was hoping to raise $5billion by cutting down its stake in the Australian firm from 23.1% to 4.5% as is battles soaring costs.
“Shell is reviewing its options in relation to its remaining 13.6% holding in Woodside,” the company said in a statement in response to the announcement.