Petronas Sweetens Offer for Progress After Unsolicited Approach

Progress Energy Resources Corp. said Friday that Malaysia's state-owned oil and gas company has agreed to increase its takeover offer for Progress to C$22 a share from C$20.45 following the Canadian company's receipt of an unsolicited proposal from an unidentified third party.

As reported, state-owned Petroliam Nasional Bhd., or Petronas, agreed in June to buy Canada's Progress, a natural-gas producer, for 5.5 billion Canadian dollars (US $5.4 billion). It also plans to build a liquefied-natural-gas export terminal on Canada's west coat.

In a statement Friday, Progress didn't elaborate on the third-party proposal.

The Petronas-Progress deal is one of a number of recent forays by Asian companies into Canada's energy patch. Since it was announced, China's CNOOC Ltd. made a blockbuster US $15.1 billion offer to buy Nexen Inc.

Progress said its board has unanimously determined that the amended deal with Petronas is in the best interests of Progress and is fair to the company's security holders, who will vote on the Petronas deal on Aug. 28.


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