Total Energy Services drops plans to buy Strad Energy

Wed Sep 23, 2015 6:24pm EDT
 
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Sept 23 (Reuters) - Canadian oilfield services provider Total Energy Services Inc said on Wednesday it will not pursue a takeover bid for smaller rival Strad Energy Services Ltd after the target adopted a poison pill.

Calgary-based Total Energy said on Monday it intends to make an offer for the rest of Strad at C$2.90 per share, its second attempt to buy the company.

Strad earlier on Wednesday adopted a poison pill that required any takeover bid to remain open for 120 days in order to qualify as a "permitted bid".

Total said the 120-day period is inordinately long and exposes it to an unacceptable level of risk in the current market conditions.

Total Energy currently owns about 9.95 percent of Strad's outstanding shares.

The takeover battle comes amid consolidation in the North American oilfield services industry due to a slump in global crude prices.

(Reporting by Sneha Banerjee in Bengaluru)