Gulf ups bid for Asamera

Common shareholders of Calgary-based Asamera Inc. are going to get more money for their shares under a revised takeover bid by Gulf Canada Resources. The large oil and gas producer has increased its offer for common shares of Asamera to $11.87, up from $10.50 earlier. The deal is said to be worth an extra $56 million to Asamera shareholders.

Asamera’s board is expected to recommend shareholder approval of the new offer which is due to expire April 11. The previous offer of $25 a preferred share and $35 for each warrant remains unchanged.

Gulf has also acquired an option to purchase 10% of Asamera’s common shares from treasury which should thwart any counter offer, analysts contend. For one thing, the defensive move would make it difficult for another bidder to merge Asamera into its operations; and it would also provide Gulf with a tidy profit if it tendered those treasury shares to a competing bidder.

There has been considerable speculation that Gulf intends to sell off Asamera Minerals, which is 92%-owned by Asamera Inc. The subsidiary holds the highly profitable Cannon gold mine at Wenatchee, Wash., and the Gooseberry silver-gold mine in Nevada. The Cannon mine, in which Vancouver- based Breakwater Resources has a 49% interest, produced 137,800 oz gold last year.

Breakwater is also rumored to be a takeover target; and it probably hasn’t gone unnoticed that the purchase of Asamera Minerals and Breakwater by a single entity would almost overnight create a major gold mining company.