Bad deal: says Petro Andina board, retaining its assets in Argentina, Trinidad and Colombia
Petro Andina knocks back Pluspetrol
Canada-based Petro Andina's board has unanimously recommended that its shareholders reject an unsolicited bid by Netherlands-based Pluspetrol Resources.
Petro Andina said in a release that after evaluating the offer, it had determined that Pluspetrol was undervaluing the company.
Earlier this month, Pluspetrol launched a C$400 million (US$348 million) bid for Petro Andina, aiming to expand its oil and gas operations in Argentina, Colombia and Trinidad & Tobago.
Pluspetrol, which already has extensive production in South America, said it will bid C$8.10 in cash for each share of Petro Andina.
However, Petro Andina's shares have consistently traded above the offer price since the bid was launched, indicating that investors expect a higher bid. Petro Andina's shares closed at C$9.20 yesterday on the Toronto Stock Exchange.
"This is an inadequate and opportunistic offer that fails to recognise the full value of Petro Andina," Petro Andina president Wayne Foo said in a statement.
Petro Andina said it has started looking into a number of initiatives that it believes are in the best interests of the company and its shareholders.