CALGARY — Bonterra Energy Corp. says its board of directors has unanimously rejected a takeover offer by rival Obsidian Energy Ltd.
The Bonterra board says the offer is not in the best interests of the company and urged shareholders to reject the proposal.
Obsidian has offered two of its shares for each share of Bonterra.
Bonterra says investment firm Peters & Co. Ltd. has delivered a written opinion to the board that the offer is inadequate from a financial point of view.
Shares in Obsidian closed at 48 cents on the Toronto Stock Exchange on Monday, while Bonterra shares closed at $1.10.
Bonterra is a conventional oil and gas company with operations in Alberta, Saskatchewan and British Columbia.
This report by The Canadian Press was first published Oct. 6, 2020.
Companies in this story: (TSX:BNE, TSX:OBE)
The Canadian Press