Following weeks of nasty accusations by both sides in a high profile hostile takeover attempt, Canadian Superior Energy Inc. has quietly withdrawn its bid for Calgary crosstown rival Canadian 88 Energy Corp., citing Canadian 88’s “erosion” of shareholder value relative to its own. Canadian Superior also cited Canadian 88’s refusal to provide requested information in its takeover attempt.
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Canadian 88 Rejects Canadian Superior Bid
Calgary-based Canadian 88 Energy Corp. Thursday rejected a hostile takeover bid from Canadian Superior Energy Inc. after stockholder Duke Energy, which owns 20% of Canadian 88 shares, said it did not support the proposal. Canadian Superior, begun by Canadian 88 founder Greg Noval, is less than one-tenth the size of Canadian 88, but nevertheless, it launched its takeover in April (see NGI, April 30). Noval resigned from Canadian 88 last year.
Canadian 88 Rejects Canadian Superior Bid
Calgary-based Canadian 88 Energy Corp. Thursday rejected a hostile takeover bid from Canadian Superior Energy Inc. after stockholder Duke Energy, which owns 20% of Canadian 88 shares, said it did not support the proposal. Canadian Superior, begun by Canadian 88 founder Greg Noval, is less than one-tenth the size of Canadian 88, but nevertheless, it launched its takeover in April (see Daily GPI, April 27). Noval resigned from Canadian 88 last year.
Shell Suggests Barrett Reconsider Offer
Defending its hostile takeover attempt for Denver-based Barrett Resources Corp., Royal Dutch/Shell Group’s CEO Walter van de Vijver sent a letter to Barrett’s board of directors Wednesday calling the $55 a share offer a “full and fair value” for the gas-rich independent. Barrett has rejected Shell’s offer and is now considering strategic alternatives (see NGI, March 12). There had been no response by Barrett at the end of last week.
Shell Suggests Barrett Reconsider Offer
Defending its hostile takeover attempt for Denver-based BarrettResources Corp., Royal Dutch/Shell Group’s CEO Walter van de Vijversent a letter to Barrett’s board of directors Wednesday calling the$55 a share offer a “full and fair value” for the gas-richindependent. Barrett has rejected Shell’s offer and is nowconsidering strategic alternatives (see Daily GPI, March 12).
Analysts Say Berkley Breakup Possible
Calgary-based Berkley Petroleum Corp. might be worth more if it’sbroken up and sold, according to analysts who are tracking the hostiletakeover bid by Hunt Oil Co. (see Daily GPI,Dec. 29, 2000). Dallas-based Hunt offered to buy Berkley in lateDecember for C$1.4 billion, including debt, or about C$10 a share incash for each Berkley share.
Berkley Hopes to Lure More Offers
Calgary-based Berkley Petroleum Corp. continues to fend off a C$1.4billion hostile takeover bid by Hunt Oil, announcing Monday that itwill open its data rooms next week to third parties in an attempt tolure a better buyer. Hunt, an independent based in Dallas, saw itsbid rejected last week by Berkley management (see Daily GPI, Jan. 2; Dec. 29,2000).
NiSource Drops Offer But Continues Pursuit of Columbia
NiSource dropped its hostile $74/share tender offer ($6.1billion) for all of the outstanding common stock of Columbia EnergyGroup (CG) last week and said it will return the 47,576,897 CGshares, representing 58.6% of the Columbia shares outstanding, toshareholders. It doesn’t mean, however, that NiSource is giving up.On the contrary, the company said it intends to continue thenegotiation and bidding process set up by Columbia’s board.
NiSource Drops Offer But Continues Pursuit of Columbia
NiSource dropped its hostile $74/share tender offer ($6.1billion) for all of the outstanding common stock of Columbia EnergyGroup (CG) yesterday and said it will return the 47,576,897 CGshares, representing 58.6% of the Columbia shares outstanding, toshareholders. This does not mean it’s giving up, however. On thecontrary, NiSource said it intends to continue the negotiation andbidding process set up by Columbia’s board.
NiSource, Restructuring Spoil Columbia’s Results
Columbia Energy Group revealed last week that its defense against a hostile takeover by NiSource has become quite costly, reaching $9 million in pre-tax expenses during the third quarter. The company also took a $4 million pre-tax charge during the third quarter for restructuring its retail marketing operation. The two setbacks combined led to a net loss of $9.7 million (12 cents per share) during the quarter compared to net income of $11.2 million (13 cents per share) during the same period last year. The company reported income from continuing operations of $800,000, or 1 cent per share, compared to $12.2 million, or 14 cents/share in 3Q98.