UPDATE 1-Pinnacle Gas to sell itself for $11 mln, shares jump

Wed Feb 24, 2010 9:42am EST

* Says investor group to pay $0.34 per Pinnacle share * Says offer was 28 pct premium to its Tuesday's close * Shares jump 27 pct

Feb 24 (Reuters) - Pinnacle Gas Resources Inc PINN.O said a investor group, led by Scotia Waterous (USA) Inc, will acquire the independent energy company for about $11 million, in an all-cash deal, sending its shares up about 27 percent in early morning trade.

As per the deal, the investor group will offer 34 cents for each Pinnacle share, which is a premium of about 28 percent to its Tuesday's close. The company said the acquisition is expected to close during the second quarter 2010.

Shares of the company were up about 7 cents at $0.338 Wednesday. They closed at $0.265 Tuesday on Nasdaq. (Reporting by Thyagaraju Adinarayan in Bangalore; Editing by Jarshad Kakkrakandy)

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