Petronas raises Progress Energy offer after rival bid
(Reuters) - Progress Energy Resources Corp PRQ.TO said Malaysia's state oil company Petronas PETR.UL has agreed to raise its offer to buy the Canadian natural gas producer by 8 percent after Progress received an unsolicited proposal from a third party.
Petronas, which in June launched a C$20.45 per share offer for Progress, will now pay C$22.00 for each share, or C$5.17 billion ($5.12 billion) in total.
Progress did not name the third party that made the unsolicited offer, but said its board has approved Petronas's latest offer.
The Canadian company, known for its reserves in British Columbia's Montney tight gas region as well as Alberta's Deep Basin, already has a joint venture with Petronas.
Last year, Petronas paid C$1.07 billion for a half interest in shale gas fields owned by Progress and the two pledged to study the feasibility of exporting liquefied natural gas to Asian markets.
Petronas is being advised by Bank of America Merrill Lynch on the deal, while BMO Capital Markets is advising Progress.
Progress shares rose 12 percent to C$22.45 in early trade on the Toronto Stock Exchange on Friday.
(Reporting by Krishna N. Das in Bangalore)
WASHINGTON - The Federal Reserve on Wednesday embarked on the risky task of winding down the era of easy money, saying the U.S. economy was finally strong enough for it to start scaling down its massive bond-buying stimulus. | Video
WASHINGTON - Start-up companies will be able to raise much more capital through certain public stock deals without facing costly regulatory burdens under a proposal announced by U.S. securities regulators on Wednesday.
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.