Australia-listed Drillsearch Energy’s effort to take over Ambassador Oil & Gas has been stymied by the Australian Takeovers Panel.
The Panel made a ruling on Friday that Drillsearch must not approve any acceptances of its bid offer or appoint any directors to the board.
Rival takeover bidder, Magnum Hunter Resources, made an application to the Panel on Wednesday to block Drillsearch’s takeover.
Drillsearch Energy initially made a takeover bid for the company earlier this year, making a bid whereby shareholders would be offered one Drillsearch share for every 5.4 Ambassador shares, which gave the offer an implied value of A$0.29 ($0.27) per share.
US company Magnum Hunter Resources then made a takeover bid, with the deal carrying an implied value of A$0.34 per share, trumping Drillsearch’s offer by 20%.