DNO International ASA announced that it has decided against proceeding with its proposed unsolicited takeover offer of $214 million for Calvalley Petroleum Inc.
A Norwegian company, DNO had said on July 5 that it would take its offer directly to shareholders beginning July 12 because Calvalley’s board and senior management had not responded to DNO’s earlier offer (OGJ Online, July 6, 2012).
On July 6, Calvalley disclosed it had received notice that one of its partners intends to divest its 25% working interest in Yemen’s Block 9 to an undisclosed third party.
Under Block 9's joint operating agreement, Calvalley’s existing partners have the option to match the offer and acquire either all or their proportionate share of the working interest to be divested.
“The opportunity by Calvalley to match the offer on Block 9 may help explain Calvalley's previous reluctance to enter into any meaningful dialogue,” DNO said on July 12.
DNO had indicated it was interested in Calvalley’s Yemen holdings.