Petaquilla Copper Stock Doesn't Budge After Inmet Rebuffed

By Canadian Press
15 Jul 2008 at 01:43 PM GMT-04:00

VANCOUVER (CP) -- Petaquilla Copper Ltd. stock (PTC) continued to trade just below an offer of $C2 per share from Inmet Mining Corp. (IMN), despite Petaquilla's view that the $C345-million, all-cash takeover bid as too low and its board is looking for alternatives.

Petaquilla shares were at $C1.95 in Toronto at midday Tuesday, unchanged from the previous close on Monday, a few hours before it issued a statement saying that its board rejects an informal offer announced by Inmet on July 6.

Inmet's announcement doubled the market value of Petaquilla's shares on July 7, to $C1.94 from $C0.96 cents, in the heaviest trading since Petaquilla Copper's stock began trading on Dec. 31 at $C3.50 on the Toronto Stock Exchange.

"Until the offer is formally commenced and has been reviewed, the board of directors is unable to comment on the offer. However, the board notes that even Inmet accepts that the bid price is inadequate," Petaquilla said in a statement late Monday.

"The company is carrying on business in the normal course, which includes the on-going consideration of strategic alternatives to the offer."

It has hired Kingsdale Shareholder Services Inc. as its information agent and appointed two of Petaquilla Copper's directors to a special committee to address the situation.

Inmet shares traded Tuesday at $C64.94, up $C0.96 cents, at the Toronto Stock Exchange.

© The Canadian Press 2008