Canadian oilfield services provider Total Energy Services Inc. said on Sept. 24 it will not pursue a takeover bid for smaller rival Strad Energy Services Ltd. after the target adopted a poison pill.
Calgary, Alberta-based Total Energy said on Sept. 21 it intends to make an offer for the rest of Strad at C$2.90 per share, its second attempt to buy the company.
Strad earlier on Sept. 23 adopted a poison pill that required any takeover bid to remain open for 120 days in order to qualify as a "permitted bid".
Total said the 120-day period is inordinately long and exposes it to an unacceptable level of risk in the current market conditions.
Total Energy currently owns about 9.95% of Strad's outstanding shares.
The takeover battle comes amid consolidation in the North American oilfield services industry due to a slump in global crude prices.
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