Petro-Canada boosts Bid For Junior Canada Southern a 2nd Time
Petro-Canada made a third unsolicited bid for Canada Southern Petroleum late Tuesday, offering $13 US per share for the junior energy company with potentially large Arctic gas holdings.
Petro-Canada's bid, worth more than $212 million at current exchange rates, is nearly twice its initial offer of $7.50 per share when it sparked a bidding war with an unsolicited takeover offer for Canada Southern in May.
And the latest bid is significantly higher than the last offer of $11.10 US per share by Syncrude partner Canadian Oil Sands Trust , who also sweetened its bid after stepping in as a white knight bidder for the company.
Petro-Canada is keen to get Canada Southern's key acreage in Canada's Arctic islands - much of which is jointly held between the two companies.
"We believe these Arctic assets will play an important role in the future development of northern Canadian natural gas," Kathy Sendall, senior vice-president of Petro-Canada's North American Natural Gas business said in a release.
While we have no current development plan, any development of the Canadian Arctic would require considerable land consolidation.
The sweetened bid also extends the takeover deadline to July 27.
Petro-Canada's bid, worth more than $212 million at current exchange rates, is nearly twice its initial offer of $7.50 per share when it sparked a bidding war with an unsolicited takeover offer for Canada Southern in May.
And the latest bid is significantly higher than the last offer of $11.10 US per share by Syncrude partner Canadian Oil Sands Trust , who also sweetened its bid after stepping in as a white knight bidder for the company.
Petro-Canada is keen to get Canada Southern's key acreage in Canada's Arctic islands - much of which is jointly held between the two companies.
"We believe these Arctic assets will play an important role in the future development of northern Canadian natural gas," Kathy Sendall, senior vice-president of Petro-Canada's North American Natural Gas business said in a release.
While we have no current development plan, any development of the Canadian Arctic would require considerable land consolidation.
The sweetened bid also extends the takeover deadline to July 27.
posted by Ottawa Gas Prices | 8:21 PM
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