DNO rules out bid for Calvalley Petroleum

Thu Aug 23, 2012 2:38pm EDT
 
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(Reuters) - Calvalley Petroleum Inc CVIa.TO said it is still in talks with several third parties after Oslo-listed DNO International ASA (DNO.OL: Quote) dropped its pursuit of the company.

Calvalley's shares, which fell as much as 20 percent to a low of C$1.89, recouped some of the losses to trade down 7 percent at C$2.20 on Thursday afternoon on the Toronto Stock Exchange.

DNO said it was no longer interested in making an offer to buy Calvalley as the Canadian company failed to provide enough information regarding legal claims against it by Al-Zarqa Electricity.

The claims were related to an agreement dated December 19, 1996, Calvalley said in a statement, without giving more details. Calvalley could not be immediately reached for comments.

"DNO would not agree to execute a confidentiality agreement and therefore no information in connection with this matter (Al-Zarqa litigation) was provided," Calvalley said in the statement.

DNO said in early July it planned a C$216.8 million cash offer for Calvalley, only to pull its offer one week later citing some "recent news". It had, however, kept a window open to have further talks with Calvalley.

Calvalley said on Thursday it had signed confidentiality agreements with some third parties as part of its process to review strategic options.

(Reporting by Balazs Koranyi, Sandhya Vijayan and Shounak Dasgupta; Editing by Rodney Joyce and Supriya Kurane)