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Tuesday, May 29, 2012

Ithaca Energy Shares Go Clunk - Maybe Time For a Look?


CALGARY - Ithaca Energy Inc. (TSX:IAE.TO - News) shares lost one-third of their value in trading a day after the energy developer announced it has ended talks with all parties interested in the potential acquisition of the company.
Shareholders sold off stock in the Calgary-based company Tuesday after a late Monday announcement that its board decided continuing takeover talks would result in an offer that does not properly reflect the company's value.
"In reaching this decision the board of directors has fully considered the company's current value, its growth potential, the future value that can be delivered to shareholders and the responses of the third parties with whom discussions have been held," the company said in a release.
It said its shares are currently undervalued both because of global market volatility and because oil prices have weakened significantly in the past weeks.
Chart forITHACA ENERGY INC (IAE.TO)

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