Dome Petroleum Ends Talks With TransCanada After Bid Is Revealed

TransCanada Pipelines said Sunday it has offered to purchase the assets of troubled Dome Petroleum Ltd. for $4.3 billion, or about $3.22 billion U.S. at current exchange rates.

Dome suspended negotiations with TransCanada a few hours after the announcement, saying disclosure of the offer “violated the terms and spirit of a confidentiality agreement entered into with prospective purchasers.”

In a news release, Dome chairman Howard Macdonald said of TransCanada’s announcement:

“It would seem this was done in an attempt to prevent the company from considering other proposals. Accordingly, Dome has suspended discussions with TransCanada Pipelines to carry on discussions with other interested parties.”

He did not identify the other parties, but said one has also made a purchase proposal.

Toronto-based TransCanada, a unit of Bell Canada Enterprises, is the major transporter of natural gas from western Canada to eastern markets.

Announcement of the purchase proposal came in statements by Gerald Maier, president of TransCanada, and Neil Nichols, its chief financial officer.