Obsidian Energy allows hostile takeover offer for Bonterra Energy to expire - Action News
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Obsidian Energy allows hostile takeover offer for Bonterra Energy to expire

Obsidian Energy has ended its hostile takeover attempt for Bonterra Energy Corp.

Economic environment has changed since Obsidian launched offer last year, its CEO says

An oil pumpjack stands under a clear blue sky.
A pumpjack pulls oil out of the ground in central Alberta. In January, Obsidian Energy Ltd. extended its hostile takeover offer for Bonterra Energy Corp. until March 29. (Kyle Bakx/CBC)

Obsidian Energy has ended its hostile takeover attempt for Bonterra Energy Corp.

The company allowed its offer to buy Bonterra to expire on Monday.

Obsidian interim CEO Stephen Loukas said the economic environment has changed substantially since the company launched its offer last year.

Loukas said combining at the proposed exchange ratio is no longer in the best interests of Obsidian Energy or its shareholders.

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

Bonterra had repeatedly recommended shareholders reject the bid.