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It looked all over for Dana Petroleum as hostile bidder Korean National Oil Corp declared today that it will not raise its 1800p a share offer.
Dana shares crashed 21p to 1788p leaving them below the bid price for the first time since KNOC launched its hostile approach three weeks ago.
The fall means that the Koreans are now free to buy shares in the market which would enable KNOC to nudge it acceptance levels for the bid up from 49% to more than 50% with ease. But there were no immediate signs of its adviser Bank of America Merrill Lynch buying up shares in the market.
Oil analysts at broker Collins Stewart said that the lack of positive share-price reaction to Dana's defence document yesterday and KNOC's decision to declare its offer “full and final” meant that there “is a high probability that the offer will be successful”.
Reader views (2)
Total silence. unions,government, opposition, doesn't anyone care?
- alan, England., 09/09/2010 20:50
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Once again one must ask where is the Government. First it was utilities, then engineering firms being snapped up, according to the founder of Tomkins at a knock down price, now it is oil companies. We must ask ourselves why do the Koreans want to buy Dans, simple for the oil. If their is an oil shortage, as there will be in five years time, will they sell the oil back to us at double the price, or will they use it for themselves, while we have to ration fuel. Will the government please start thinking of the future. First of all ban hedge funds buying up shares the think there is going to be a take over bid. Simple remedy, no share that has not been held for a year has any voting rights, Hallow anyone alive out there. Can we have your opinion Vince Cable?
- alan, England., 09/09/2010 17:05
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