Ithaca bombs after takeover bids fail

North Sea explorer Ithaca Energy said it had ceased discussions with all parties regarding a takeover of the company.

In March the company's share price surged after it said multiple parties were interested in buying it.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

"The board has concluded that continuing the current process at this time was unlikely to produce a transaction with financial terms that properly reflect the value of the company, particularly in light of the current volatility in global markets and the short term softening in Brent crude prices," the company said.

"In reaching this decision the board of directors has fully considered the company's current value, its growth potential, the future value that can be delivered to shareholders and the responses of the third parties with whom discussions have been held."

Disappointed investors, who no doubt had hoped for a bidding war, sold out of the stock, pushing it down 29% by late morning on Tuesday.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.