Orion Petroleum rejects new offer by Octanex NL

The directors of Orion Petroleum directors (ASX: OIP) have rejected a conditional scrip bid by Octanex NL (ASX: OXX).
The Octanex Bidder’s Statement was served on Orion last Thursday.
The Octanex takeover bid of one Octanex share for every six Orion shares is 21.2% below the price at which Orion shares closed today.
Orion’s closing price today is 8.0 cents. Octanex’s closing price on the same day was 38 cents or 6.3 cents of value per equivalent Orion share.
The Octanex bid is conditional and contains conditions that Octanex was advised when it first stated its intention to bid for Orion, were not able to be met.
These conditions include that the Directors of Orion personally warrant certain matters to Octanex and that Orion maintains available cash resources of at least $11 million until the end of the offer period.
In a statement, Orion said neither of these conditions will be satisfied so in its present form the Octanex bid is one that cannot succeed.
The Orion Directors have indicated they will not be accepting for their own shareholdings and recommend that Orion shareholders should also not accept it.
Orion’s largest shareholder, Eastern Star Gas (ASX: ESG), with an interest of more than 22% in Orion’s issued capital has advised that it will not be accepting the Octanex bid under the current terms.

http://www.proactiveinvestors.com.au/companies/news/6225/orion-petroleum-rejects-new-offer-by-octanex-nl-6225.html