By an OGJ Online Correspondent
CALGARY, Feb. 5�A unit of Hunt Oil Co., Dallas, has increased the cash component of an offer for Calgary-based Berkley Petroleum Corp., Calgary, to $10.50 (Can.) per share from $10.
The offer is open for acceptance until 7 p.m. Calgary time Feb. 15. The original offer was open until Feb. 6.
Hunt urged Berkley shareholders to carefully consider the revised offer, despite efforts by Berkley since the hostile bid was unveiled Dec. 27, to obtain a better deal than the original $10/share offer plus assumption of $379 million in Berkley debt.
Berkley said Feb. 4 it had rejected Hunt's "marginally improved" offer.
Michael L. Rose, president and CEO of Berkley, said, "Hunt Oil is moving in the right direction, but in the wrong magnitude. Hunt realized that it was holding a losing hand with its original offer and this one is little better. With yesterday's announcement of the timeline for bids, we have now fired the starting pistol for interested parties to bring forward their acquisition proposals. We will be requesting bids very shortly and the auction will conclude by Feb. 15th."
Hunt already owns 9.6% of Berkley.
Rose said Berkley agreed to withdraw a poison pill on Feb. 15 because it is confident of a sale. He said there had been no friendly discussions with Hunt to date, and declined to say whether any are planned.
Berkley has a 21% interest in major natural gas discoveries in the Fort Liard region of the Northwest Territories and is a lead partner in a gas exploration play in the East Lost Hills region of California�s San Joaquin Valley. It also has oil production in Saskatchewan and gas in northern Alberta.
