July 7, 2008 / 11:17 AM / 10 years ago

Ithaca says Endeavour bid inadequate, rejects offer

LONDON, July 7 (Reuters) - North Sea-focused oil and gas firm Ithaca Energy IAE.V IAE.L rejected an offer from U.S. rival Endeavour International Corp. END.A on Monday, saying the offer inadequately valued its assets and prospects.

AIM- and Canada-listed Ithaca, which received the unsolicited nonbinding $3.25 cash and shares offer from U.S.-listed Endeavour last month, said the offer was “not in the best interests of Ithaca shareholders.”

“Ithaca has a number of ongoing initiatives that will be concluded in the near term which we believe will provide greater value for Ithaca’s shareholders,” Ithaca Chairman John Summers said in a statement.

On AIM, Ithaca shares rose 4 percent to 149.75 pence at 1104 GMT, valuing the entire firm at around 160 million pounds ($315.5 million). In Canada, its shares closed on Friday at C$2.87.

Ithaca said total reserves at end-May rose 66 percent to 65.4 million barrels of oil equivalent from end-December, following an independent evaluation.

Endeavour said in its June 19 offer statement that a merger would result in a larger North Sea oil and gas firm that would boost funding for development and cut exposure to market volatility. (Reporting by Hsu Chuang Khoo; Editing by Quentin Bryar)

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