Petronas extends bid for Progress Energy

Petronas extends takeover bid for Progress Energy in hopes of winning approval

Associated Press

CALGARY, Alberta (AP) -- Malaysian state-owned oil firm Petronas has extended the deadline for its takeover bid for Canadian gas producer Progress Energy in hopes it will be able to overcome the Canadian government's objections to the $5.2 billion deal.

The Canadian arm of Petronas said Monday the deadline had been extended by 30 days to Nov. 30 and may be extended again. The two companies say they have met with government and plan to submit a revised proposal in hopes of winning approval.

The government did not publicly explain the decision to block the deal earlier this month. It has investors wondering if Chinese state-owned CNOOC's $15.1 billion takeover of Nexen will be approved.

The government says it will soon release a new policy framework that will clarify the rules around foreign takeovers.

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