FSA inquiry may delay Heritage merger with Genel

Heritage Oil, the exploration and production group operating in northern Iraq, has said that investigation by the Financial Services Authority into the Turkish Genel Energy might delay its merger worth £3.4 billion with Turkish group.

Financial Services Authority is questioning the credentials of certain executives of the Turkish Genel Energy.

Under the merger proposal, Genel Energy's two executives would join the board of the combined group.

The recent announcement by the Heritage Oil sent its shares down by 2.3 per cent to 525½p a share.

The London-listed explorer said the inquiry, "could potentially affect the ability of certain members of Genel's operational management team to assume their proposed roles in the combined entity."

The anticipated merger of Heritage Oil with Genel may drive the united group into the FTSE100.

City regulator declined to comment, while Genel could not be reached for comment.