Bonterra Energy announces rival bid for Spartan Oil

Tue Dec 11, 2012 12:43pm EST
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* Bid could derail Pinecrest Energy's planned takeover

* Bonterra offers about C$441 million

* Unsolicited bid values Spartan at C$4.96 a share

* Spartan shares up 3 pct at C$4.88

TORONTO, Dec 11 (Reuters) - Bonterra Energy Corp said on Tuesday it offered about C$441 million ($447 million) to buy Spartan Oil Corp, a move that could derail Pinecrest Energy Inc's planned takeover of Spartan.

Calgary-based Bonterra said its proposed deal would offer strong strategic value to shareholders of both companies, as the combined company would have one of the premier light-oil assets around the Pembina region in the western Canadian province of Alberta.

Bonterra is offering shareholders in Spartan 0.1169 of a Bonterra share for each Spartan share held. Based on Spartan's closing price on Monday, the unsolicited bid values the company at C$4.96 a share or C$441.4 million.

"While negotiations are ongoing, a binding agreement has not yet been signed. Therefore there can be no assurance that any transaction will result from these discussions," Bonterra said in a statement.

Pinecrest agreed last month to acquire Spartan in a bid to raise its output from reserves in Alberta and Saskatchewan. The bid is currently worth about C$4.44 or C$394.4 million.   Continued...