Norwegian oil company DNO ASA has achieved another slight increase to its stake in Faroe Petroleum, it said Jan. 4 as it continues its battle for control of the British business.
DNO's combined ownership and bid acceptances now stand at 43.8%, up from about 43% on Jan. 3 but still short of a controlling stake in London-listed Faroe.
It had previously required backing from 57.5% of Faroe shareholders to take control, but that fell to 50% on Jan. 3 after it lifted its holding sufficiently to turn the bid from voluntary to mandatory and thus subject to takeover regulation requiring a lower threshold.
Faroe separately reiterated its view on Jan. 4 that the 610 million pound (US$772 million) offer was inadequate, undervaluing the North Sea portfolio that DNO covets as it seeks to expand its operations, which are primarily based in the Middle East.
A report by oil industry analysts Gaffney, Cline & Associates, first released by Faroe on Jan. 2, valued the Aberdeen-based company's shares at between 186 and 225 pence, a premium of up to 48% on DNO's offer price of 152 pence.
RELATED: DNO Presses On With Faroe Petroleum Takeover Offer Despite Board Rejection
DNO's shares traded up 4% by 2:43 a.m. CST (8:43 GMT), supported by a 1.6% increase in the price of crude oil, while Faroe shares rose 0.5% to 154 pence.
Faroe shareholders have been set a Jan. 18 deadline to decide whether to accept DNO's bid. (US$1 = 0.7899 pounds)
Recommended Reading
Kissler: OPEC+ Likely to Buoy Crude Prices—At Least Somewhat
2024-03-18 - By keeping its voluntary production cuts, OPEC+ is sending a clear signal that oil prices need to be sustainable for both producers and consumers.
Buffett: ‘No Interest’ in Occidental Takeover, Praises 'Hallelujah!' Shale
2024-02-27 - Berkshire Hathaway’s Warren Buffett added that the U.S. electric power situation is “ominous.”
Canadian Natural Resources Boosting Production in Oil Sands
2024-03-04 - Canadian Natural Resources will increase its quarterly dividend following record production volumes in the quarter.
NGL Growth Leads Enterprise Product Partners to Strong Fourth Quarter
2024-02-02 - Enterprise Product Partners executives are still waiting to receive final federal approval to go ahead with the company’s Sea Port Terminal Project.
Enbridge Advances Expansion of Permian’s Gray Oak Pipeline
2024-02-13 - In its fourth-quarter earnings call, Enbridge also said the Mainline pipeline system tolling agreement is awaiting regulatory approval from a Canadian regulatory agency.