Obsidian Energy allows hostile takeover offer for Bonterra Energy to expire

A file photo of the logo for Obsidian Energy. CREDIT:

Obsidian Energy has ended its hostile takeover attempt for Bonterra Energy Corp.

The company allowed its offer to buy Bonterra to expire on Monday.

Read more: Obsidian extends deadline for hostile Bonterra takeover, lowers tender condition

Obsidian interim CEO Stephen Loukas said the economic environment has changed substantially since the company launched its offer last year.

Loukas said combining at the proposed exchange ratio is no longer in the best interests of Obsidian Energy or its shareholders.

Read more: Obsidian Energy formalizes share swap bid for rival Bonterra Energy

Obsidian had offered two of its shares for each Bonterra share.

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Bonterra had repeatedly recommended shareholders reject the bid.

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