Dune Energy, Eos extend share purchase offer amid merger negotiations

By Caroline Salls

Pittsburgh, Feb. 9 – Dune Energy, Inc. and Eos Petro, Inc. agreed to extend the expiration of the tender offer to acquire all of the outstanding shares of Dune common stock to midnight ET on Feb. 13 to give the parties more time to negotiate revised terms for their merger agreement, according to a news release.

The tender offer was previously scheduled to expire at midnight ET on Feb. 6.

As of the close of business on Feb. 5, a total of 62.27 million shares or 85.29325% of outstanding shares, had been validly tendered, which is enough to satisfy the merger agreement’s minimum tender condition, the release said.

As previously reported, Eos has informed Dune that, as a result of the recent severe decline in oil prices, Eos cannot complete the merger and tender on the original terms. Because of the severe decline in oil prices, Eos' sources of capital for the merger and tender offer were withdrawn.

Dune and Eos are negotiating potential revised terms for the merger agreement. The revised terms may include changing the $0.30 per share price for the shares of Dune common stock tendered for purchase in the tender offer.

Dune is a Houston-based energy company.

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