SKorea's KNOC launches hostile bid for Dana Petroleum

20th August 2010, Comments 0 comments

State-owned Korea National Oil Corporation on Friday launched a hostile takeover bid for Dana Petroleum, valuing the British oil explorer at 1.87 billion pounds (2.9 billion dollars, 2.4 billion euros).

The company decided to take its 1,800-pence-per-share takeover bid directly to Dana investors after failing to win management backing.

"KNOC today announces the terms of a cash offer to be made for the entire issued and to be issued ordinary share capital of Dana," the group said, adding that it has already won support from 48.62 percent of shareholders.

The Korean firm originally offered 1,700 pence per share and then raised it to 1,800 pence but Dana management rejected the offer on August 12.

"It has always been our desire to agree a recommended transaction with the board of Dana," KNOC said.

"We are very disappointed the board of Dana does not agree that 1,800 pence per share represents a full and fair value for the company."

The cash bid represents a 59 percent premium to Dana's closing share price on June 30, the day before KNOC's approach was revealed.

© 2010 AFP

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