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Magellan Petroleum rejects Stratex buyout offer

DENVER (AP) -- Magellan Petroleum Corp.'s board of directors has decided not to pursue an unsolicited buyout offer from Stratex Oil & Gas Holdings Inc.

In late August, Stratex proposed buying Magellan in a cash and stock deal worth almost $124 million at the time. In rejecting the offer, Magellan's board noted issues including questions about whether Stratex would be able to finance the deal.

Shares of Denver-based Magellan closed at $1.09 Monday, up 1 cent.

Shares of Watertown, Conn.-based Stratex were unchanged at $2.20. Stratex shares were trading at $1.65 when it made its buyout offer of one share of Stratex plus 65 cents per share for every outstanding share of Magellan.