Lochard board reveals Athena concerns

THE board of Parkmead take-over target Lochard Energy yesterday warned it may not be able to afford to meet commitments under its exploration licences as a standalone entity.

Lochard said it believed that the best way for shareholders to retain an interest in the licences would be to “merge with a suitable partner, such as Parkmead”. The Lochard board’s comments came after a group of investors opposing the £14.5 million bid by Tom Cross’s Parkmead said they now represented shareholders owning just over 25 per cent of the company.

The consortium argues the all-share bid by Aberdeen-based Parkmead undervalues the business.