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REFILE-Cavendish Asset Management urges Ithaca shareholders to reject Delek deal

Published 2017-02-06, 07:51 a/m
REFILE-Cavendish Asset Management urges Ithaca shareholders to reject Delek deal
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(Refiles to add dropped words Delek Group , paragraph 1)

LONDON, Feb 6 (Reuters) - Ithaca IAE.TO investor Cavendish Asset Management said it "strongly urges" shareholders in the North Sea oil producer to reject a $524 million offer from Delek Group DLEKG.TA to buy 80 percent of Ithaca's equity it does not already own.

"I anticipate lots of potential deals in the future...This acquisition would be relatively cheap, and Delek Group will see good payback in a short space of time," said Paul Mumford, fund manager at Cavendish Asset Management, which has over 13 million shares in Ithaca, or about a 3 percent stake.

Delek on Monday offered to pay a 12 percent premium over Ithaca's Friday closing price, implying an enterprise value of $1.24 billion.

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