DNO Adds to Faroe Stake in Hostile Takeover Saga

Friday, January 4, 2019

Norwegian oil company DNO has achieved another slight increase to its stake in Faroe Petroleum, it said on Friday as it continues its battle for control of the British business.

DNO's combined ownership and bid acceptances now stands at 43.8 percent, up from about 43 percent on Thursday but still short of a controlling stake in London-listed Faroe.

It had previously required backing from 57.5 percent of Faroe shareholders to take control, but that fell to 50 percent on Thursday 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 Friday that the 610 million pound ($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 Wednesday, valued the Aberdeen-based company's shares at between 186 and 225 pence, a premium of up to 48 percent on DNO's offer price of 152 pence.

DNO's shares traded up 4 percent by 0843, supported by a 1.6 percent increase in the price of crude oil, while Faroe shares rose 0.5 percent to 154 pence.

Faroe shareholders have been set a Jan. 18 deadline to decide whether to accept DNO's bid.


($1 = 0.7899 pounds)

(Reporting by Terje Solsvik Editing by David Goodman)

Categories: Finance Mergers & Acquisitions Europe

Related Stories

Petrovietnam Agrees First-Ever LNG Term Deal with Shell

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

Offshore Rig Outlook: As 2025 Challenges Fade, Path Ahead Brightens

Following Big Loss in 2025, Oil Steadies

Russia Gives ExxonMobil More Time to Exit Sakhalin-1 Oil and Gas Project

Saipem Nets Multibillion-Dollar Job at World's Largest Offshore Gas Field

Russia Seeks to Boost Oil Exports to China as Sanctions Tighten

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Saipem Bags $1.5B Contract for Türkiye Largest Offshore Gas Field

Current News

Vantris Energy Lands Petronas Job on Malaysia’s Offshore Fields

Murphy Oil Appraisal Well Boosts Resource Outlook at Field off Vietnam

Viridien Kicks Off Multi-Client Reimaging Program off Malaysia

Petrovietnam Agrees First-Ever LNG Term Deal with Shell

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

Jereh Group Delivers Oil Separation Systems for Petrobras’ FPSO Units

Offshore Rig Outlook: As 2025 Challenges Fade, Path Ahead Brightens

Offshore Energy and Boosting the Energy Efficiency of Water Processes

Low Demand, High Supply Keeps Asia LNG Spot Prices Flat

Following Big Loss in 2025, Oil Steadies

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com