Medco to decide on raising Novus bid early next month: Report

Oil and gas producer PT Medco Energi International is evaluating the timing and pricing for Australian Novus Petroleum Limited, a Medco senior official said Friday.

"We will decide whether or not we will raise the bid or go ahead with our plan to take over Novus early next month," Medco Finance Director Sugiharto told Dow Jones.

Medco last month launched a surprise A$1.74 a share takeover bid for Novus, valuing it at A$326 million.

The consideration to change the bid pricing came after Novus' management Monday made a counter offer, valuing the company at A$331 million.

Novus' independent directors Friday said talks are continuing with a number of parties that may lead to a rival takeover bid for the Australian energy company.

The independent directors of the mid-sized oil and gas company urged shareholders to reject the hostile takeover bid from Medco, saying the share offer "substantially" undervalues the company.

Earlier this week, an independent expert valued Novus in the range of A$1.96-A$2.75 a share. The expert concluded the Medco offer was neither fair nor reasonable. (*)