AP reported that Royal Dutch Shell had sold 10% stake in Australian oil and gas company Woodside Petroleum Limited for AUD 3.31 billion in a transaction that sent Woodside shares tumbling.

The Hague based energy giant had announced the day before that it planned to reduce its stake in the liquid natural gas focused Australian company to 24.27%.

Swiss bank UBS had agreed to underwrite the sale of 78.34 million Woodside shares at AUD 42.23 each 7.9% discount to the company's closing price.

Shell issued a statement confirming that the sale was completed. The Australian share market closed down, dragged lower by it worst performer Woodside which lost 6.3% to AUD 42.99. The benchmark S&P/ASX200 index fell 0.79% to 4,741 points.

Mr Bill Chatterton director of RBS Morgans said "That Shell is selling out of it is a little bit of a negative in the short term but I don't think [so] in the longer term."

Mr Peter Voser CEO of Shell said that his company was reducing its stake in Woodside because it prefers direct interest in assets and JV rather than indirect stakes."

(Sourced from Associated Press)