That’s the share price chart of Parkmead Group, a small Aim-listed oil and investment company. The spike has followed news that Tom Cross, the founder of Dana Petroleum, has been appointed executive chairman.
From a company press release: Read more
State-run Korea National Oil Corp will on Friday brief the market on the total stake it has acquired in Dana Petroleum as it nears completion of its hostile $2.6bn bid for the UK-listed oil and gas explorer, reports Reuters. Last week, KNOC reported it bought a 29.5% stake in Dana, after saying in August it had secured non-binding letters of intent to accept its bid from around 49% of shareholders. The KNOC/Dana deal, if successful, would be the biggest hostile acquisition by a South Korean firm and biggest deal for KNOC, which purchased Canadian group Harvest Energy last October for $1.7bn. Read more
One “can’t help but marvel at the convolution of the bid being assembled for Potash Corp of Saskatchewan,” notes DealJournal, citing a report in Canada’s Globe and Mail newspaper on moves to assemble a Chinese-led consortium “with touches of Canadiana” to buy PotashCorp and foil BHP Billiton’s $38.6bn hostile bid.
The plan being considered, according to the newspaper’s unidentified sources, would include significant capital from a Chinese resource company or investment fund, “which would then be combined with smaller contributions from international sovereign wealth funds and possibly Canadian financial players such as pension funds. Strategic partners such as rival potash producer Mosaic Co could also be part of the consortium”. Read more
Tom Cross, chief executive of UK oil explorer Dana Petroleum, has written to Korea National Oil Corp to “extend an olive branch” after issuing an impassioned defence of his company’s value, reports the FT. In a final push against a £1.87bn hostile bid from South Korea’s national oil company, Dana unveiled an independent valuation report arguing it was worth £21.10 to £24.65 per share, well above KNOC’s “opportunistic and inadequate” £18 offer. In an email to KNOC’s management, Dana’s board stressed it was still willing to negotiate. But investors, notes the WSJ, are sceptical of the value any third-party report can provide. KNOC, meanwhile, plans to issue a statement by Friday ruling out any increase in its offer in return for board recommendation, reports Reuters, citing The Times. Read more
Here’s an AIM-listed enigma to ponder on Monday.
Life is looking rather good if you’re a London-listed oil mid-cap at the moment. Kind of less so if you’re out to buy one. Why? Read more
Dana Petroleum will this week urge South Korea’s national oil group to raise its £1.87bn takeover offer in return for support of the UK oil explorer’s board, reports the FT. The push comes after Korea National Oil Corp on Friday took its £18-a-share offer directly to Dana’s shareholders, with nearly 49% backing the first foreign hostile bid by an Asian state-owned entity. Dana will use its interim results on Friday to stress its value. Reuters adds that KNOC is awaiting shareholder responses to its hostile bid. Meanwhile, the Telegraph reports, hedge funds are set to make estimated profits of £80m if KNOC’s bid succeeds. Read more
South Korea’s national oil company was on Thursday night set to launch a £1.67bn hostile takeover bid for the UK’s Dana Petroleum that could be unveiled as early as Friday, the FT reports. The move would mark the first hostile approach by an Asian state-owned oil company in the UK. The board of Korea National Oil Corp met on Thursday to approve the move, although people close to the situation warned the bid could yet be delayed. The Telegraph meanwhile notes the latest market rumours on Dana after earlier reporting that the bid is backed by hedge funds that own 35% of Dana stock. Read more
Dana Petroleum has formally rejected Korea National Oil Corporation’s £1.7bn takeover approach after the two sides failed to agree on the value and terms of the offer, the FT reports. In a strongly worded statement Dana said it would not recommend KNOC’s £18 per share indicative offer to its shareholders as it failed to reflect the full value of its oil exploration programme. FT Alphaville adds commentary, while Reuters reports on Friday that KNOC said it was still eyeing the UK oil explorer, raising chances of a hostile bid. Read more
Market disclosures at dawn. And so on. We can’t remember the last time the RNS statements washed so much dirty laundry in public following a takeover break-up.
It is one of Canada’s less loved energy companies. But Harvest Energy’s combination of oil and gas production and refining operations certainly appealed to state-run Korea National Oil Corp, which on Thursday said it had agreed to buy the Calgary-based oil company for C$4.1bn ($3.9bn).
The deal, which represents a handsome 47 per cent premium to Harvest’s 30-day weighted average trading price up to and including October 20, would be the second-largest overseas acquisition by a South Korean company, behind Doosan Infracore’s $4.9bn purchase of Bobcat’s assets in 2007, and would rank as South Korea’s biggest overseas oil and gas deal to date, according to Dealogic. Read more
State-run Korea National Oil Corp said on Thursday it agreed to buy Canada’s Harvest Energy Trust for C$4.1bn ($3.9bn) as South Korea competes with other resource-hungry Asian economies for overseas assets. KNOC will pay C$1.8bn in cash for Harvest shares at C$10 each, representing a 37% premium over Wednesday’s closing price of C$7.30. It will also assume C$2.3bn of debt. The sides plan to complete the deal by end-December. Read more
The state-owned Korea National Oil Corporation has said it was one of the unsolicited bidders for Burren Energy. On October 9, Burren said it had rejected several approaches of up to £11 a share, valuing the independent oil producer at £1.5bn. KNOC said it was considering its options and has appointed Jeffries as its adviser. Italy’s ENI has also made a bid. Read more