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Dana Petroleum says Korean £18 bid too low | |
(10 days later) | |
Dana Petroleum has told shareholders the bid from Korea National Oil Corporation (KNOC) is too low, according to an independent valuation. | Dana Petroleum has told shareholders the bid from Korea National Oil Corporation (KNOC) is too low, according to an independent valuation. |
The valuation, commissioned by Dana, values the company at 2120p a share, compared with KNOC's offer of 1800p which values the business at £1.67bn. | The valuation, commissioned by Dana, values the company at 2120p a share, compared with KNOC's offer of 1800p which values the business at £1.67bn. |
Dana points out that it is worth even more as a result of a takeover it has now announced of oil business PCUK. | Dana points out that it is worth even more as a result of a takeover it has now announced of oil business PCUK. |
It says if the same valuation method is used, it is now worth at least 2270p. | It says if the same valuation method is used, it is now worth at least 2270p. |
A statement from Dana added that the £240m purchase of PCUK from Suncor could mean it is worth as much as 2465p a share, as the independent experts said the assets were really worth £368m. | A statement from Dana added that the £240m purchase of PCUK from Suncor could mean it is worth as much as 2465p a share, as the independent experts said the assets were really worth £368m. |
KNOC made its offer direct to Aberdeen-based Dana's shareholders last month after it failed to convince the company's management to recommend the bid - something that makes the offer "hostile" in takeover parlance. | KNOC made its offer direct to Aberdeen-based Dana's shareholders last month after it failed to convince the company's management to recommend the bid - something that makes the offer "hostile" in takeover parlance. |
Dana's chief executive, Tom Cross, said KNOC had rebuffed attempts to reach a mutually agreeable solution. | Dana's chief executive, Tom Cross, said KNOC had rebuffed attempts to reach a mutually agreeable solution. |
He said: "Since the first moment KNOC approached Dana, we have held out the hand of friendship and asked KNOC repeatedly to hold a proper value discussion." | He said: "Since the first moment KNOC approached Dana, we have held out the hand of friendship and asked KNOC repeatedly to hold a proper value discussion." |
The company's chairman, Colin Goodall, said KNOC's approach to the takeover process proved it knew Dana was worth more than its offer: | The company's chairman, Colin Goodall, said KNOC's approach to the takeover process proved it knew Dana was worth more than its offer: |
"For proof that Dana is worth more than 1800p per share," he said, "look no further than KNOC's extraordinary actions. | "For proof that Dana is worth more than 1800p per share," he said, "look no further than KNOC's extraordinary actions. |
"For a national oil company to launch a hostile offer without access to detailed technical information means KNOC must be highly confident the Dana assets must be worth much more than their offer price." | "For a national oil company to launch a hostile offer without access to detailed technical information means KNOC must be highly confident the Dana assets must be worth much more than their offer price." |
The Korean government gave KNOC a $6.5bn (£4.2bn) war chest this year to help secure supplies for its growing economies. | The Korean government gave KNOC a $6.5bn (£4.2bn) war chest this year to help secure supplies for its growing economies. |
The company has a target to raise the nation's production capacity to 300,000 barrels per day (bpd) by 2012 from 130,000 bpd in December. | The company has a target to raise the nation's production capacity to 300,000 barrels per day (bpd) by 2012 from 130,000 bpd in December. |
Dana operates mainly in the North Sea, which accounts for 81% of production, although it also has facilities in Egypt and West Africa. | Dana operates mainly in the North Sea, which accounts for 81% of production, although it also has facilities in Egypt and West Africa. |
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