EDMONTON, Alta. The board of Pe Ben Oilfield Services has unanimously recommended shareholders reject a hostile takeover bid by Mullen Group Income Fund.

The board called the offer “financially inadequate and opportunistic” and said it “fails to recognize the value of Pe Ben’s assets and future prospects,” according to a repot on Small Cap Express, an investors newsletter.

The newsletter also reported that Pe Ben shares surged nearly 4% to $13.50, while units of Mullen fell 2.6% to $27.71.

Mullen already holds approximately 10% of Pe Ben’s shares and earlier this month sought to complete the acquisition.

“The trust conversion process we undertook during the first half of 2005 caused us to closely examine all of our operating and non-operating assets, including our approximate 10% share position in Pe Ben,” said Mullen president and co-CEO, Stephen Lockwood. “With the trust conversion now behind us, we believe the time is right to add Pe Ben to the Mullen Group.”