Spartan Oil Corp. gained the most in more than two months after the Canadian oil producer received a rival offer to its planned C$376 million ($381 million) acquisition by Pinecrest Energy Inc.
Spartan rose 6.8 percent to C$4.70 at the close in Toronto, the most since Sept. 14.
Spartan is considering the unsolicited offer, the Calgary-based company said in a statement today. It didn’t disclose the bidder or the terms. Spartan and Pinecrest announced an all-stock deal Nov. 21 then worth C$427 million, or C$5.12 a share, which didn’t offer a premium for Spartan shareholders.
A C$12.5 million breakup fee would provide “some consolation” if Spartan chooses a rival bidder, Pinecrest Chief Financial Officer Dan Toews told Bloomberg First Word in a phone interview. The board is scheduled to meet today to discuss the development, he said.
Pinecrest, which has fallen 13 percent since the day before the deal was announced, “remains committed to completing” the deal, the Calgary-based company said in a separate statement.
Pinecrest promised to initiate an annual dividend of 15.5 cents a share following the Spartan takeover and a 3-for-1 share consolidation. Pinecrest gained 3.9 percent today to C$1.62.
Spartan holds acreage and production in the Cardium oil field in Alberta’s Pembina area, where drilling results have been predictable enough to support a dividend, Pinecrest Chief Executive Officer L. Wade Becker said in a Nov. 21 telephone interview.