NZOG mounts full bid for Cue

New Zealand Oil & Gas is fulfilling analysts' predictions that falling oil prices would prompt mergers and acquisitions by mounting a full takeover bid for Cue Energy, just two months after buying a 19.99 per cent stake owned by Todd Energy.

The unconditional cash offer, at A10c per share, is pitched at the same price as the December purchase from Todd and values the company at around A$70 million, but NZOG said it would be comfortable if it can acquire at least a further 10 per cent of shares under offer.

In practice, the bid appears aimed at buying the remaining 7 per cent of Cue still owned by Todd, which can only be acquired by mounting a formal takeover offer.