Dana hopes for share increase after hostile bid
Published 06/09/2010 | 05:00
DANA Petroleum, the UK oil company, will release a third-party valuation report this Wednesday arguing that the company may be worth more than £20 (€24) a share, according to the 'Financial Times'.
Wednesday's report will be published with Dana's defence document and possibly also details of the North Sea oilfields Dana is buying from Suncor Energy, the newspaper said.
Dana will use the report and the Suncor details to argue for an increase to the hostile bid from Korea National Oil Corporation (KNOC).
KNOC's current offer for Dana, which has many Irish shareholders, stands at £18 a share. Dana chief executive Tom Cross said last month that KNOC's hostile bid undervalued his company.
"We are one of the first companies people come to when they do a deal in the North Sea, because we have a very strong operation capability," he said.
Shareholders representing about 49pc of Aberdeen-based Dana's stock sent letters of support to KNOC after the offer.
"[The offer] provides compelling value in cash for Dana shareholders and incorporates full and fair value for Dana's entire portfolio of production, development and exploration assets," the Korean company said yesterday.
Davy Stockbrokers said last month that it would be hard for management of Dana to rebuff the Korean bid.