Trilogy attracts a buyer

Article Excerpt

TRILOGY ENERGY $5.14 (Toronto symbol TET; TSINetwork Rating: Speculative) (403290-2900; www.trilogyenergy.com; Shares outstanding: 105.3 million; Market cap: $648.1 million; No dividends paid) has now agreed to a takeover offer from Paramount Resources (symbol POU on Toronto). Under the deal, Trilogy shareholders will get 0.267 of a Paramount share for each Trilogy share they now own. Over the last two years, Paramount has sold assets worth more than $2.5 billion and paid off all of its debt. It’s now ready to expand. At today’s $19.39 price per Paramount share, the takeover offer is worth $5.18 per Trilogy share. Trilogy is currently trading just below that price, which indicates investors are not expecting a higher bid. We’ll say more as the takeover unfolds, but for now, Trilogy Energy is still a hold. hold…