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Ithaca dragged into messy love triangle

Takeover target Lochard Energy publicly airs its dirty laundry, dragging down shares of suitor Parkmead Group and oil field operator Ithaca Energy
June 11, 2013

Shares in Ithaca Energy (IAE) slipped 9 per cent following downbeat revelations about one of its producing assets by a minority partner, Lochard Energy (LHD). Lochard's management made the disclosure when responding to a letter from an angry shareholder group.

IC TIP: Buy at 116p

Some minority shareholders of Lochard are up in arms after the company's board of directors agreed to be taken over by Tom Cross' Parkmead Group (PMG) at a rock-bottom price. The £14.5m acquisition price, at 4.9p a share, represented an 11 per cent discount to Lochard’s closing price the day before the deal was announced and a 60 per cent discount from when Lochard's current management team removed the former group of executives 12 months ago.

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