DNO not to proceed with bid for Calvalley

After Calvalley Petroleum (TSX: CVI.A) quickly advised shareholders not to act and subsequently went on to introduce poison pills and noted that executives control a substantial part of the company, DNO International ASA has caved. The Norwegian oil and gas company will not go forward with the previously announced bid at 2.30 CAD per share. Calvalley Petroleum has been trading above the said price as of late. On the other hand, many DNO Petroleum shareholders have been feeling it was offering too much, in comparison to further development of its own assets in Yemen and elsewhere. Furthermore there was a disclosure from Calvalley regarding an agreement with a third party on how the set party would be able to match the offer, in DNO’s view explaining the Calvelley Board’s reluctance for dialogue.