We’re gonna miss these catty RNS statements.
Korean National Oil Corp. responded to Dana Petroleum’s value-based defence with a rather deadpan refusal to shift its 1800p share offer on Thursday. From KNOC’s statement:
KNOC has noted the Dana Board’s statement and views, including its assessment of the strategic importance of Dana’s assets and its management team to KNOC and recognises that no recommendation from the Dana Board will be forthcoming in support of the Share Offer. Accordingly, KNOC is today waiving its right to increase the Share Offer (i) with the recommendation of the Dana Board; or (ii) if Dana announces any material new information after the date specified as the last date for any such announcements in Rule 31.9 of the Code.
*KNOC’s Share Offer of 1,800 pence per Dana Share is full and final and will not be increased save that KNOC reserves its right to increase the Share Offer if a competitive situation arises (including if a third party announces an offer or possible offer for Dana).
So much for the olive branch. Shares in Dana had promptly dropped below 1800p to 1788p at pixel time on Thursday, in response to KNOC’s wrath.
So, unless Dana’s chief executive Tom Cross can get a white knight – or the Anne Marie field is a massive gusher – it looks like this chess game has reached checkmate – though not without a few dry parting shots from KNOC (emphasis ours):
Responding specifically to the points raised in the Defence Document, in relation to Dana’s comment that the Company is “in a transformational growth period”, KNOC notes that organic production growth in the existing asset base(2) has fallen by 4.6 per cent. during H1 2010 (vs. H1 2009) and that reserves within Dana’s core 2P portfolio (prior to the acquisition of Petro-Canada UK Limited) have been subject to a negative revision of approximately 24 million barrels during H1 2010(3). In this context, Dana has recently turned to acquisitions in competitive auctions in an effort to grow production and reserves.
And as a final kick in the ribs, KNOC has extended the magnanimity of a conqueror to Dana’s management:
As previously stated, KNOC highly values the skills, knowledge and expertise of Dana’s existing operational management and employees and the value of Dana on a going concern basis is included in the Share Offer. However, KNOC does not require the support of the Board of Dana to proceed with this transaction…
KNOC has a well-established track record of employee retention in previous acquisitions and is looking forward to engaging with Dana management and employees at the earliest opportunity regarding the exciting future of Dana as part of the wider KNOC group.
Just note the bold print:
Dana Shareholders are encouraged to accept the Share Offer immediately and, in any event, by no later than 1.00pm (London time) on 23 September 2010.
Your move, Cross. If there are any left.
Related links:
Too late for Dana to avoid being dished up for a bid – Lombard
The price of oil realpolitik – FT Alphaville
Lombard on Dana Petroleum – FT