CALGARY�Takeover target Berkley Petroleum Ltd., Calgary, said it received an enthusiastic response from potential buyers after it opened its data rooms to potential bidders Jan. 10.
The company is fighting a $1.4 billion (Can.), $10/share hostile bid from Dallas-based Hunt Oil Co. It has described the offer as inadequate and opportunistic. The offer includes assumption of about $380 million in Berkley debt.
Berkley CEO Mike Rose said the company is trying to get the best deal for shareholders and is �encouraged� by the response from potential buyers.
The company has hired financial advisors to assist in a possible sale and has put a shareholder rights plan in place.
Berkley shares closed at $11.45 on the Toronto Stock Exchange Jan. 11, and the shares have risen about 30% since a Hunt unit made the offer Dec. 27.
Hunt owns 9.6% of Berkley shares and would gain about $39 million if it sold them. Hunt said it is not looking for a profit on a share sale but wants to expand and acquire assets in Canada.
Berkley has a 21% interest in a major gas play in the Fort Liard region of Canada�s Northwest Territories and is also involved in a major deep gas play at East Lost Hills in California�s San Joaquin Valley. The company has also begun an exploration program in Oman.