Sunov to withdraw Novus takeover bid

Takeover target Novus Petroleum Ltd. announced Friday that Sunov Petroleum Pty. Ltd. won't increase its takeover bid for the company.

This now leaves Indonesia's PT Medco Energi Internasional the only bidder in the running for Novus. It is offering Novus shareholders A$1.90 a share, valuing the company around A$350 million.

Sunov's prior offer was A$1.85 a share.

"Sunov now confirms that it has decided that it will not be increasing or extending its offer," Sunov said in a statement released by Novus to the Australian Stock Exchange.

To ensure that Novus shareholders who have already accepted Sunov's offer have the opportunity to accept Medco's higher bid, Sunov will apply for official permission to withdraw its bid, Sunov said.

The withdrawal of Sunov, a private consortium associated with Novus Chief Executive Bob Williams, means that Medco can now move to gain control of the Australian company after a five-month battle.

Novus' independent directors said last week they intend to accept Medco's A$1.90-a-share offer for their own holdings, in the absence of a higher bid. (*)