MELBOURNE, July 31 (Reuters) - Woodside Petroleum Ltd's planned $2.68 billion share buyback from Royal DutchShell is on the brink of failing, based on a count ofvotes mailed in ahead of a shareholder meeting on Friday.
Woodside said on Thursday about 71.3 percent of votes castso far were in favour, with the rest against. It needs supportfrom 75 percent of votes cast to go ahead with the buyback,which would cut Shell's stake in the company to below 5 percent.
Shell is selling the bulk of its 23.1 percent stake inWoodside. As part of the deal Woodside aims to buy back andcancel half the shares that Shell is selling. Shell has alreadysold the other half to institutions.
Australia's top petroleum company will be hopingshareholders who attend Friday's meeting will tip the vote infavour of the buyback.
Some Australian fund managers have opposed the move becauseit gives Shell access to tax credits that they believe allshareholders should have access to on an equal basis.
Woodside has tried to persuade investors they will allbenefit from the buyback as it will boost earnings per share anddividends per share for everyone, while removing an overhangthat has long weighed on its share price.($1 = 1.0726 Australian Dollars) (Reporting by Sonali Paul; Editing by Richard Pullin)