According to a report in Monday's Australian Financial review, coal seam gas company Arrow Energy Ltd is set to reject a AUD 3.26 billion takeover bid from Royal Dutch Shell PLC when it responds to the offer this week.

The report said that there is speculation that Arrow might reject the offer as it has taken so long to respond and as many analysts see the bid as too low.

An unnamed source said that Arrow may have been sounding out other companies on whether they might be interested in its assets.

(Sourced from Australian Financial review)