Possible 24p a share bid for Regal Petroleum

10th Dec 2010 13:52

Regal Petroleum is in discussions that could lead to a 24p a share bid for the oil and gas company, which represents a 60% loss on the flotation price of 60p a share in September 2002. AIM-quoted Regal raised £44.9m at 390p a share in April 2005, so anyone taking those shares up will lose 94% of their money.Regal had already admitted that it was in bid discussions but they were "at a preliminary stage" in November. Regal says that "it is in final-stage discussions" at the moment. In November 2009, the AIM Disciplinary Committee fined Regal Petroleum £600,000 and publicly censured the oil company for a catalogue of breaches of AIM rules between June 2003 and May 2005.There is no guarantee that the bid will happen.