CNPC drops takeover bid for Verenex Energy

China National Petroleum Corp (CNPC) has abandoned its US$460 million takeover offer of Canada’s Verenex Energy, the Wall Street Journal reported. CNPC dropped the deal after the government of Libya, where Verenex has oil projects, refused to approve the takeover. Libya’s National Oil said it would veto the deal, which it had the rights to do under its contract with Verenex. It would then make a takeover offer for Verenex on the same terms as those put forward by CNPC. CNPC’s termination of its bid led investors to worry that Verenex could get a raw deal from Libya, sending the company’s stock down 19% to C$6.18 (US$5.72) in intraday trading on the Toronto Stock Exchange Tuesday.