Obsidian Energy extends hostile takeover bid for Bonterra Energy

Obsidian Energy Ltd. is extending its hostile takeover offer for Bonterra Energy Corp. until March 29.

The offer from the Calgary-based oil and gas company was set to expire on Jan. 25.

Bonterra has repeatedly recommended shareholders reject the bid.

Obsidian has offered two of its shares for each Bonterra share.

In December, Obsidian reduced the minimum number of tendered shares needed to complete the transaction to 50 per cent from two-thirds.

Obsidian has said a combined Obsidian-Bonterra could save $50 million in the first year and a total of $100 million in the first three years. However, Bonterra has said those savings are "uncertain."