Oct 15 Petaquilla Minerals Ltd, a
Canadian gold producer with operations in Panama, said on Monday
its board unanimously rejected a C$109 million ($111.4 million)
takeover offer from Inmet Mining Corp, saying it
undervalued the company.
The board said Inmet's offer to acquire all outstanding
shares of Petaquilla for 48 Canadian cents each did not reflect
the target company's growth prospects.
The offer was a 37 percent premium to Petaquilla's closing
share price on Sept. 5, when Inmet announced plans for a bid.
Since then, Petaquilla's shares have advanced 80 percent. On
Monday, they were unchanged at 63 Canadian cents in Toronto.
Inmet, looking to expand in Panama with the acquisition of
Petaquilla, made its offer last month and said the bid would
remain open until Nov. 5.
Vancouver-based Petaquilla operates a surface gold
processing plant at its Molejon Gold Project in south-central
Toronto-based Inmet owns mining operations in Turkey, Spain
and Finland. It has an 80 percent interest in a development
property in Panama that is under construction.
UBS Securities Canada Inc is advising Petaquilla on the