Dome Creditors Request More Information From Amoco
CHICAGO (AP) _ A group of creditors owed money by Dome Petroleum has requested more information about Amoco Corp.’s proposed $3.9 billion buyout of the giant oil and gas company, officials say.
But the significance of the request was downplayed by a Dome spokesman who said the company had expected questions to continue until June 30, when the creditors must decide whether to approve the proposed acquisition.
″We are meeting with them to answer any question, to give them information and convince them to join up,″ said Dome spokesman David Annesley.
The request comes at a time when one of Amoco’s rivals, TransCanada PipeLines Ltd., is reportedly planning to make a bid for Dome. A TransCanada spokesman declined to comment on reports that a group led by TransCanada might make an offer.
Dome and Amoco Canada Petroleum Ltd. signed a definitive merger agreement May 12 for what would be the largest buyout in Canadian history.
Under Amoco’s proposal, unsecured creditors would receive 35 percent of the $1.5 billion they are owed, while secured lenders would receive an average of 88.5 percent of the $3.22 billion owed them, company officials said.
The deal, which needs the approval of Dome’s shareholders as well as its secured and unsecured creditors and the Canadian government and courts, appears to have satisfied all but the lenders.
On Monday, a group of 20 unsecured lenders headed by Chase Manhattan Bank requested more information to permit them to decide ″whether or not the Amoco offer is a fair one that should be accepted,″ said Peggy Peckham, chairwoman of the group and a Chase vice president.
Last week, the Bank of Montreal, Dome’s second-biggest secured lender, asked the Canadian Senate Energy Committee to re-open the bidding for Dome.
The bank is owed about $635 million.
Dome, Canada’s largest independent oil and natural-gas company, has been burdened by nearly $6 billion in debts. If the deal goes through, Amoco Canada would rise from Canada’s eighth-largest company to its second-largest, officials have said.