Investors in Canada's Verenex Energy Inc. said on Wednesday they saw growing risks of delays in the $C499 million ($425 million) sale of the company to China or Libya.
Libya has said it will exercise its right to pre-empt a friendly C$10-a-share bid for Verenex from China National Petroleum Corp (CNPC) but Verenex in its earnings release on Tuesday said Libya had yet to make a formal offer.
Shares of Verenex were trading little changed at C$9.16 on Wednesday, indicating investors still expect a sale to happen. But some are uneasy over the lack of a formal bid from Libya, or word on Libya's consent to China's offer.
"The best thing is either the Libyan government says yes to the Chinese, or the Libyan government agrees to buy it on the same terms," a Verenex shareholder who declined to be identified said on Wednesday.
"But we have to be prepared for a situation where the downside occurs and Verenex goes back to a much lower price if it doesn't happen.
Source: Reuters
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