Libya scores a 'C'

摘要

The Libyan Investment Authority's offer for Canadian upstream independent Verenex Energy of C$7.09 ($6.58)/share is a bad omen. The LIA had the right to pre-empt any offer for Verenex, such as the one made by China's state-owned CNPC. However, by paying almost $3/share less than CNPC offered, the LIA has breached its contractual obligations to match the third-party bid. Verenex appears to have little choice but to accept. Although the company's shareholders could still reject the LIA offer, Verenex has little leverage. As the company said, the offer appears to represent "the best alternative reasonably available to Verenex and its shareholders."