IN THE NEWS / Blue Range Shows Claws In Big Bear Attack
CALGARY, Nov 16 - The head of Blue Range Resource Corp. , target of a hostile takeover bid from Big Bear Exploration Ltd., showed some claws of his own on Monday, firing back terse criticism at the would-be acquirer.
Blue Range Chief Executive Gordon Ironside also said several companies had expressed interest in being a potential white knight for his Calgary-based firm and that he would be disappointed if it was sold for less than C$8 a share.
In what has become a heated and personal battle for control of the Canadian natural gas producer, Big Bear has offered to swap 11 of its shares for each Blue Range share in a deal initially worth C$194 million.
Big Bear, led by well-known Canadian oil man Jeff Tonken, has the backing of five disgruntled institutional shareholders that have agreed to tender their combined 33 percent stake in Blue Range unless a higher bid surfaces.
At a news conference at Blue Range's Calgary office, Ironside turned the tables on former Stampeder Exploration boss Tonken and his team, saying their record at Big Bear was no better than his at Blue Range, despite their criticism of his management since launching the bid last week.
"Since assuming control of Big Bear on December 24, 1997 that company's financial performance has been dismal," Ironside told reporters.
He pointed out Big Bear had issued equity at decreasing values since the former Stampeder managers took control late last year and the company -- which is about 10 times smaller than Blue Range -- reported a C$19.4-million loss and C$20-million deficit at the end of September.
He also refuted comments made by Big Bear last week that Blue Range was set for asset writedowns, saying the company's value had been enhanced recently as indicated by an updated engineering report on its northern Highway-Begg gas property.
The report proved large reserve additions there since March 31, Ironside said, adding that recent reports from nine industry analysts showed an average net asset value for the company of C$7.97 a share.
Despite Ironside's view that Blue Range had strong operating prospects, he acknowledged it was clear the company would be sold now that Big Bear lobbed it into play.
He said he would be disappointed if the company was auctioned off for less than C$8 a share, and that he had the support of several shareholders not associated with the ones behind the coup, as evidenced by letters he showed reporters.
Late last week, Blue Range implemented a shareholder rights plan to buy time and announced it would open confidential financial and operating data rooms on Thursday for what he said were several prospective purchasers.
"A company that I'm fairly closely associated with phoned me and said, 'We're interested -- we've been interested for a long time. What can we do?'" Expressions of interest from various other companies based in Canada and the United States were also shown, Ironside said.
"These people will do their analysis based on fact, not perception, not comments made through the media," he said.
Blue Range closed down C$0.10 on Monday to C$6.05. Big Bear was unchanged at C$0.58, placing the value of its offer at C$6.38 a Blue Range share. |
