ANR Chief Calls Coastal’s Tender Offer ‘Inadequate’

Coastal Corp.’s $2.2-billion takeover bid for American Natural Resources Co. is meeting determined opposition from American Natural, according to an exchange of letters between the chief executives of the two companies on Saturday.

Coastal’s directors Friday night authorized a cash tender offer of $60 a share for each of American Natural’s 37 million outstanding common shares, to begin today.

In the exchange of letters, made public by both companies, Coastal Chairman Oscar Wyatt told American Natural Chairman Arthur Ceder that the takeover would result in a company with assets exceeding $7 billion and annual revenue of about $9 billion.

Wyatt said the two companies’ natural gas pipeline systems are complementary, as are their oil and gas exploration and production activities. The combined company would have gas reserves of 1.3 trillion cubic feet and oil reserves of 40 million barrels, he noted.

Wyatt told Ceder: “Coastal has no intention of liquidating or dismembering ANR.”

In his response, Ceder called the unsolicited offer “entirely inadequate,” although he said it would be submitted to American Natural’s board in due course.

He said: “I have great difficulty accepting at face value your statement that ANR would not be liquidated or dismembered if Coastal’s offer were accepted.”

Ceder said that, in view of Coastal’s current debt load and the additional debt it would incur to acquire all of American Natural’s common stock, Coastal could not avoid “a massive sell-off of assets.”

He said American Natural intends to take whatever legal and other actions are necessary to protect its stockholders.