Calvalley Petroleum Falls After DNO Drops Takeover Offer

Calvalley Petroleum Inc. (CVI/A), a company that explores for oil and natural gas in Ethiopia and Yemen, fell the most in more than four months after DNO International ASA (DNO) dropped its bid to buy the company.

Calvalley fell 17 percent to C$2.12 at the close in Toronto, the most since Feb. 14.

DNO said today it won’t proceed with its all-cash bid to buy Calvalley at C$2.30 for each Class A share, or about C$216.9 million. Calvalley’s board is considering it options after a partner in its Yemen project announced the potential sale of a 25 percent stake, said Oslo-based DNO, which announced its offer on July 5.

Calvalley said late yesterday it was forming a special committee to explore strategic alternatives and its board has adopted a so-called poison pill to protect against unsolicited takeover bids.

To contact the reporter on this story: David Wethe in Houston at dwethe@bloomberg.net

To contact the editor responsible for this story: Tina Davis at tinadavis@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.