Oil & Gas Corporate News
Dana Petroleum Plc (LON:DNX) (DNX, 1786p, ? (0.06%)) issued a statement in response to the announcement by Korea National Oil Corporation that its offer of 1,800p per Dana share is full and final and will not be increased save that KNOC reserves its right to increase the offer if a competitive situation arises. Dana noted that it published, and posted to all Dana shareholders, a defence circular which includes a comprehensive Independent Expert valuation of Dana's assets based on full and current technical and cost data. Dana believes that KNOC and its advisers do not have this full and current underlying data, therefore they could not have performed as detailed an analysis as the Independent Expert valuation which is reported in the circular. Hence the Board believes that the KNOC Offer substantially undervalues Dana and having been so advised by RBS Hoare Govett, RBC Capital Markets and Morgan Stanley, unanimously recommends that Dana shareholders should reject the offer and take no action.
Comment: The share price is now below the offer price and the market is pricing in a very small risk that the offer will be rejected and the stock will lose most of the takeover effect. We believe that in absence of a competitive bid for Dana, the KNOC offer is as good as it gets.
Petroneft Resources (LON:PTR) (PTR, 47.75p, ? (0.0%)) announced the appointment of Gerard Fagan as an Independent Non-Executive Director of the Company. Mr. Fagan, aged 61, previously worked with Smurfit Kappa Group Plc for 23 years before his retirement as Group Financial Controller in September 2009. During this time he had global responsibility for controlling the financial operations of Smurfit Kappa, a company with turnover of EUR7bn and operations in over 30 countries worldwide. Mr. Fagan has vast experience in mergers and acquisitions, corporate finance, accounting, taxation, insurance and corporate governance. He is both a Chartered and Chartered Certified Accountant and has previously served on the audit committee of the Institute of Chartered Accountants in Ireland. Mr. Fagan will also join both the Audit and Remuneration Committees of Petroneft.
Exillon Energy (LON:EXI) (EXI, 175p, ? (1.69%)) announced that on 8 September 2010, the FTSE EMEA Regional Committee approved the Group's…
