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UPDATE: Progress Share Rise 7% as Petronas Agrees To Renew Takeover Bid

Progress Energy Resources (PRQ.TO) shares rose 7% in heavy trading in the wake of reports stating that Malaysian state oil firm Petronas will renew its bid for the oil and gas producer.

Canada blocked Petronas' bid for Progress this month after Industry Minister Christian Paradis said it was not likely to bring a "net benefit" to the country, Reuters reported. He gave Petronas 30 days to make additional representations to amend its bid.

The Canadian government, sources have told Reuters, wanted to approve the deal but was afraid that would tie its hands when reviewing a much more controversial $15.1 billion bid by China's CNOOC Ltd for Nexen Inc. (NXY.TO).

Two Petronas sources familiar with the deal told Reuters on Monday that the firm agreed to the extension and was eager to complete the acquisition despite the shock decision by Canada.

The Petronas board agreed to the extension at a regular monthly meeting, the sources told Reuters. The Malaysian firm is also studying additional steps to reassure Canada that the proposed acquisition will meet the "net benefit" requirement, the sources said.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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