Answering rumors circulating last week concerning a possible takeover bid by Royal Dutch Shell, EnCana Corp. said Thursday it "is not aware of any intention by any party to make an offer to purchase all of the issued and outstanding shares of EnCana, nor is EnCana in discussions with any party with respect to the purchase of its issued and outstanding shares."
The rumor pushed EnCana's share price up about 10% on rumors about Shell's possible takeover, then the stock slowly settled after EnCana issued its denial. Meanwhile, Shell declined to comment on the rumor. The only published business between the two companies last week was the news that Shell has acquired from EnCana 19 leases in the Beaufort Sea off Alaska.
In a statement, Calgary-based EnCana noted the company's board of directors and management team believe the independent's "continued independence" was the best way to create long-term value for shareholders.
"When EnCana Chairman David O'Brien and I announced the creation of EnCana Corp. three and a half years ago, our vision was to build a flagship, Canadian-headquartered energy company that would be one of the strongest in our industry," said EnCana CEO Gwyn Morgan in a statement. "The name EnCana was chosen from the words 'energy Canada'. Since that time, investors have realized a total shareholder return of approximately 200% as employees delivered top-tier production and reserves growth.
"EnCana has taken an important place in North American's energy supply, and has become a symbol of Canadian innovation and competitiveness," Morgan added. "Today, EnCana is extraordinarily well positioned to continue to create long-term shareholder value while delivering on our corporate mission of providing energy for people."
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