Shares in U.K. gas giant BG Group dropped 2.8 percent Wednesday despite news the board of Australian shale energy company Pure Energy was recommending a bumped up takeover offer reported Tuesday.

The $637 million bid raised a previous offer by 25 percent and came with the promise of deep finance for a potential plant for liquefied natural gas, or LNG, to produce the company’s rich stores of shale gas.

BG had cautioned in statements that Pure shareholders faced substantial financial risk in having to hire help to build the LNG plnat.

Arrow (20 percent) was the rival bidder to BG’s (10 percent) A$8 per share bid. Shell, which has a shale concession in oil-poor Sweden, owns 11.2 percent.

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