Iron Bridge urges investors to reject PE-backed Velvet's bid

The board of directors of Calgary-based oil and gas company Iron Bridge Resources Inc (TSX: IBR) has urged shareholders to reject an unsolicited acquisition offer from Velvet Energy Ltd. Last month, Velvet proposed to acquire all of Iron Bridge's issued and outstanding common shares in a deal that values the company at about $120 million. Iron Bridge said shareholders owning about 36 percent of shares will not support the offer, which will transfer "substantial upside" from Montney Oil play assets to Velvet. Calgary's Velvet is backed by Warburg Pincus, Trilantic Capital Partners, 1901 Partners Management and Canada Pension Plan Investment Board.

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