KNOC launches hostile bid for Dana Petroleum

The state-owned Korea National Oil Corp (KNOC) made a hostile £1.9 billion hostile bid for UK explorer Dana Petroleum as the oil giant received support from shareholders representing about half of Dana stock.

KNOC senior vice-president Dr Seong-Hoon Kim announced in a statement that it offered 1,800p-per-share and to buy Dana’s convertible bonds.

Commenting on bid, Dr Seong-Hoon Kim said, "We believe that our offer of 1,800p per share fully and fairly reflects all of Dana's recently announced and ongoing developments, together with its exploration potential.”

KNOC turned hostile after its earlier takeover offer was turned down by the Dana Petroleum. Shares in Dana Petroleum slipped around 13 per cent on August 12 when it turned down Korean company’s offer.

Analysts have predicted that the UK-based Dana Petroleum would fall to the hostile bid launched yesterday by Korea National as the bid immediately gained support from 48.62 per cent of shareholders.

Shareholders that have backed the KNOC offer include Schroder Investment Management, JPMorgan Asset Management and BlackRock Investment Management Ltd.

Dana Petroleum is the latest in the row of attempts by KNOC to acquire smaller explorers. KNOC has plans to spend around $6 billion on acquisitions and projects this year.