Canada's Gibson Energy says it turned down takeover offer

Thu Aug 11, 2016 1:40pm EDT
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Aug 11 (Reuters) - Oil transportation company Gibson Energy Inc said on Thursday it had rejected a takeover offer from a foreign buyer, calling it inadequate.

Gibson shares were up about 8.7 percent at C$17.41 in Toronto.

The Calgary-based company, which had a market value of C$2.27 billion as of Wednesday's close, said it would proceed with a plan to divest its industrial propane business, and that it was not seeking offers to sell itself.

Canada's Financial Post reported on Wednesday that Gibson rejected a C$2.8 billion acquisition offer this month from a Singapore-based private equity firm.

Gibson, which did not name the entity, said its board decided to reject the offer after going over it with financial and legal advisers.

Gibson said in July it hired RBC Capital Markets to advise on a planned sale of its propane business. (Reporting by Amrutha Gayathri in Bengaluru; Editing by Saumyadeb Chakrabarty)