CALGARY - Enmax Corp. has raised its takeover offer for Cordero Energy Inc. (TSX:COR) to $4.75 per share from $4.35.
Enmax, owned by the city of Calgary, presented its bid in February. The proposal was endorsed by the target company's board, but Cordero shares have been trading above the original offer price for more than a month, indicating market expectations of a sweeter bid.
Cordero stock traded as high as $4.85 shortly after Friday's announcement, but by midafternoon was up by three cents to $4.70, suggesting those expectations had been satisfied.
The new Enmax bid puts a value of about $175 million on the equity of Cordero, which is developing oil, conventional natural gas and coalbed methane reserves and represents a vertical integration for the Calgary utility enterprise.
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