2009-08-17-2008-08-01-2008-08-01

Canceled acquisition of co.

Endeavour International Corp., London, (Amex: END; London: ENDV) has canceled its acquisition of Ithaca Energy Inc., London, (Toronto Venture: IAE) for approximately US$363.8 million in cash. Endeavour had offered US$3.25 per each of the approximately 111.9 million outstanding Ithaca shares, a 44.2% premium to the pre-announcement price. Endeavour holds a 2.4% stake in Ithaca already. Endeavour chief executive and president William L. Transier says, "We have diligently worked to establish a dialogue with the Ithaca board to convince them that the transaction is compelling and to develop terms for a friendly merger attractive to both sets of shareholders. Ultimately there is only so much we can do to persuade them to discuss the benefits of a merger. Ithaca has so far declined to engage with us at any level and yesterday's announcement clarified the board's decision not to consider the benefits of our proposed offer. We believe that this is a missed opportunity." He adds that Endeavour still believes a merger with Ithaca would provide a catalyst for enhanced shareholder value, but the company still has a number of strategic opportunities to pursue. Ithaca has assets in the U.K. North Sea through subsidiary Ithaca UK, with interests ranging from 20% to 100% in 30 blocks or partial blocks under 16 licenses covering more than 514,000 acres.