Calgary-based oil and gas exploration and development company Ranger Oil Limited (Ranger), communicated to shareholders on April 26, 2000 that the company wanted them to reject a $1.6 billion hostile take-over bid from smaller rival Petrobank Energy & Resources Ltd. (Petrobank).
The rejection comes as no surprise after Ranger launched a suit against Petrobank and its top executives on April 24, 2000, accusing them of insider trading. The basis of the Petrobank offer is $7.50 cash per Ranger share, or, at the election of each Ranger shareholder, three Petrobank common shares for each Ranger share. The bid represents the first takeover bid launched in compliance with the Zimmerman Report on takeover bids.
Bennett Jones is acting for Petrobank on the bid with a team that includes Martin Lambert, Bob Rooney, John MacNeil, Phil Hodge and Darrell Peterson. Macleod Dixon is acting for Ranger with a team led by Robert Engbloom and David Holm.
Barclay’s Bank PLC has agreed to provide US$750 million of financing to Petrobank to complete the offer for Ranger. Mitch Williams and Denise Bright of Bennett Jones are acting for Petrobank on this aspect of the transaction. Meighen, Demers in Toronto is acting acted for Barclays with a team led by Nicholas Williams and Mark Convery with support from Merie-Anne Beavis, Jacques Demers and Gil Cornblum.