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CNOOC sweetened Nexen offer twice before it was accepted: circular
Original Publication Date: August 24, 2012 9:14AM
Publication Updated: January 9, 2025 5:02AM
CALGARY – It took China National Offshore Oil Co. a couple of tries before oil and gas giant Nexen Inc. accepted its takeover offer.
According to an information circular sent to shareholders, the Chinese state-run oil company expressed interest to Nexen on May 17, but the Calgary-based company (TSX:NXY) said the price wasn’t high enough.
Nexen management made presentations to top CNOOC executives in Vancouver on June 20 and 21, and on July 3 the Chinese company made a better offer.
Nexen decided it wouldn’t back that offer either, but said it might accept a takeover bid if the price were right.
CNOOC and Nexen officials met in London a week later, after which the Chinese firm once again sweetened its bid.
The $15.1-billion deal was made public on July 23. Shareholders will vote on the $27.50-per-share offer in Calgary on Sept. 20.
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