CALGARY -- The Canadian arm of a Malaysian state-owned oil company has extended the deadline for its takeover bid for Progress Energy Resources Corp.(TSX:PRQ) in hopes it will be able to overcome Ottawa's objections to the $6-billion deal.
Petronas Canada says the deadline had been extended by 30 days to Nov. 30 and may be extended again.
However, the two companies said Monday they have met with Industry Canada and plan to submit a revised proposal in hopes of winning approval.
"As noted in the release by the minister, Petronas Canada has up to 30 days from the date of the announcement to make any additional representations and submit any further undertakings," the companies said in a joint statement.
After Progress accepted Petronas' initial $20.45-per-share bid earlier this year, another unidentified bidder made an attempt at a rival bid that Petronas trumped by increasing its offer to $22 per share.
Financial analysts have suggested that if the Petronas deal falls through, the likes of ExxonMobil or U.K. gas giant BG Petroleum may also be potential buyers.
The Petronas-Progress decision comes as Ottawa also weighs the more politically troublesome $15.1-billion takeover of Nexen Inc. (TSX:NXY) by China National Offshore Oil Co.
The Investment Canada Act review of the CNOOC-Nexen deal by Industry Minister Christian Paradis is set to end on Nov. 11, though it can be extended by 30-day increments with the buyer's consent.
