Genel Energy raises Capricorn offer to $436 million, outbidding Norway's DNO (updated)
UPDATE 2-Genel Energy raises Capricorn offer to $436 million, outbidding Norway's DNO Adds shares in paragraph 2, analyst comment in fourth bullet point, graphic
By Yamini Kalia
Sept 25 (Reuters) - Britain's Genel Energy GENL.L raised its cash offer for Capricorn Energy CNE.L to $436 million on Friday, topping a rival offer from DNO DNO.OL and re-securing the backing of Capricorn's board after a months-long bidding war.
Capricorn shares were up 12.2% at a more than 15-year high of 443 pence by 0838 GMT, while Genel's shares fell 2.1%.
Capricorn has become a prized target for energy firms seeking a foothold in Egypt's upstream sector, with its Western Desert assets attracting competing bids from the two rivals weeks apart.
Genel secured the backing of Capricorn's board with a $360 million bid in July, before DNO offered $396 million earlier this month.
Under the revised terms of Genel's bid, Capricorn shareholders will receive about $5.74 per share, comprising $4.75 in cash and a $0.99 special dividend, a 10% premium to DNO's offer.
Zeus Capital analyst Daniel Slater said that Capricorn would give Genel a much more diversified production base, larger drilling program and sources of cash flow.
Capricorn's board withdrew its recommendation for DNO's offer to again back Genel's bid, saying it provides shareholders with "superior value, certainty and deliverability".
DNO declined to comment when asked if the company would raise its offer.
Genel has secured commitments from shareholders including Palliser Capital, Newtyn Management, Kite Lake Capital and Madison Avenue Partners, locking up about 39% of Capricorn's issued share capital.
(Reporting by Yamini Kalia in Bengaluru; Editing by Sherry Jacob-Phillips, Kirsten Donovan)