Dana’s last-ditch manoeuvre to press KNOC to raise offer

British oil explorer Dana Petroleum will try to convince Korea National Oil Corp (KNOC) to raise its 1.87 billion pound takeover offer in return for board’s approval.

The news emerged after the state-owned KNOC made a 1,800 pence-a-share hostile bid for Dana on Friday, following its earlier takeover offer that was rejected by the Dana board.

The Dana board will reportedly use its interim results on Friday this week to as a platform to highlight its values and hopes that the attraction of a board seal of approval will attract KNOC back to the negotiating table with a sweetened offer.

A recommended deal, which is structured as a quicker scheme of arrangement vote, could save KNOC as much as 25 pence in Dana share in costs.

Meanwhile, KNOC claims that its 1,800 pence-a-share offer gained support from 48.62 per cent of Dana shareholders.

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, JPMorgan Asset Management, Schroder Investment Management and BlackRock Investment Management Ltd.

KNOC, which has plans to spend about 6 billion dollars on acquisitions and projects this year, made no comment on Dana’s last-ditch manoeuvre.