Takeover battle looms over Inmet's Petaquilla offer

Petaqulla Minerals has rejected the $112-million hostile bid from Inmet Mining, triggering a likely takeover battle for Petaquilla’s Molejón gold mine in Panama.

“The Inmet offer does not adequately reflect Petaquilla’s current value or the value of Petaquilla’s substantial growth prospects, nor does it take into account the true value of Petaquilla to Inmet and its shareholders,” chief executive Richard Fifer said in a statement.

Inmet is offering 48 cents a share in cash or 0.109 Inmet shares for each Petaquilla share, which works out to a 37 percent premium over the stock’s closing price prior to the launch of the bid in early September.

Source: National Post