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- CNPC still targeting Verenex
- Verenex keeps talking to Tripoli
- Verenex says CNPC's $462m deal still a-go
- Verenex running out of time for China deal
- Verenex set for Libya legal fight
- Verenex reminder to Libya
- Verenex sees loss
- Verenex narrows its losses
- Verenex spills red ink
- Verenex waiting on NOC bid
- Tripoli primed for Verenex takeover
- Verenex move stalled by Libya probe
- Verenex says Libya puts CNPC deal at risk
- Verenex on Libya's case over sell-off
- Clock is ticking for Verenex
CNPC abandons Verenex deal
China National Petroleum Corporation (CNPC) has pulled out of its deal to buy Verenex, with the Canadian player saying the $462 million deal was scuttled after Libya refused to approve it.
The C$10 (US$9.25) per share bid for Verenex by CNPC, first announced in late February, was contingent on approval from Libyan state-run producer National Oil Corporation (NOC).
The Libya-focused player said in a statement released today that it was still in talks with the Libyan authorities, including the country's General People's Committee, to reach an agreement for Libya to buy Verenex, although the committee repeated its intent to negotiate a reduced purchase price.
"Despite Verenex having complied with all the requirements of the exploration and production sharing agreement and the NOC throughout the public sale process, the NOC has failed or refused to provide consent to the CNPC," Verenex said in a release.
Verenex shares fell C$1.10, or 14% , to C$6.55 by midmorning on the Toronto Stock Exchange, following the company's news release.
Verenex said that CNPC delivered a written notice to the company on Monday that it had terminated the acquisition agreement. That agreement expired last month but was valid until either side decided to end it.
Company boss Jim McFarland told Reuters: "We weren't able to get the approval of the NOC for that purchase agreement.
"The Libyans have been pretty clear that what they want to do is to buy the asset. It's a good asset and they like it, so that has been the stumbling block ... What the Libyans are looking for is a lower price and the question is what is reasonable?"
He added: "We are working through the process with the Libyans as we speak,. The key issue in this ... is price, but we are making progress on the key terms ... and we are hoping to have something here soon to keep moving on this thing."
He did not say when negotiations were expected to wrap up.