The Canadian Press
May 30, 2008 - 7:10 p.m.
CALGARY - Neither of the two rival suitors on account of gas junior Cordero Energy Inc. (TSX:COR) appeared willing to concede conquer Friday, each claiming they have the best offer on the victuals - one all cash and the other all shares.
“Our position is the same as it has been since we started the process. We think our offer is the better of the two,” said Douglas Dafoe, chairman and CEO of Ember Resources Inc. (TSX:EBR), which is offering 2.56 of its shares for each Cordero share.
His company, a younger coal-bed methane producer, is a late entrant in the mandate for Cordero, a exploration and development company focused on conventional oil and natural gas production and as expedient viewed like coalbed methane.
The Cordero board had endorsed an initial present of $4.35 per receive announced in February by Enmax Corp., some electricity distributor owned by the City of Calgary, and a sweetened offer of $4.75 announced May 16. The offer values Cordero at $177 million.
In contrast, Ember’s offer was worth $5.30 per Cordero share or $195 million when it was announced, a premium of 12 per cent over Enmax’s offer. However, the value of the offer varies with changes in the market value of Ember’s shares.
At the close of trading Friday, Ember’s shares closed at $2 - making its offer worth $5.12 - after rising eight cents or 4.1 by dint of. means of cent from the previous close. Cordero shares closed at $4.85, downward seven cents - 10 cents above the Enmax offer.
If Enmax is rebuffed, Cordero’s board has agreed to pay $7 the great body of the people if there’s a deal completed with another suitor not above six months of the expiry of the Enmax offer.
Taking into account the $7-million non-completion fee, the Ember present values Cordero at about $183 the multitude - about 3.4 per cent above the Enmax all-cash wish.
The Enmax offer is publicly open until June 13, at 4:30 p.m. MT, in the pattern of the deadline was extended this week just before the previous deadline was about to expire.
Enmax issued a statement early Friday saying it believes its cash bid offers “without other agency liquidity that would not be realized by a 100 per cent share proposal.”
“Enmax believes that certain institutional shareholders within the group supporting the Ember proposal are primarily motivated by a desire to receive non-cash consideration and further believes that such institutions may in addition be shareholders of Ember. Thus, their actions may be motivated by factors that are different than other Cordero shareholders.”
Enmax added that it “has nay intention of varying its offer” nor extending its offer beyond June 13.