Genel Energy shares slump as Norway's DNO withdraws bid interest
(Alliance News) - Shares in Genel Energy PLC plunged on Friday as Norwegian oil and gas operator DNO ASA said it will not be making a takeover bid.
Shares in Genel traded 14% lower at 54.40 pence each in London on Friday afternoon.
In August, Oslo-based DNO made a 69 pence per share takeover approach, valuing Genel at GBP202 million.
But Genel, an exploration and oil production company with production assets in the Kurdistan Region of Iraq, and exploration assets in Oman and Somaliland, dismissed the proposal on the grounds that it "fundamentally undervalues" the business.
On Friday, DNO said that since tabling the offer, Genel has "demonstrated no willingness to engage", despite invitations to.
"As a result, Genel shareholders were denied the opportunity to consider a proposal that offered a substantial premium, certainty of value and an attractive liquidity event," DNO claimed.
On Tuesday, DNO trumped Genel's bid for Edinburgh-based oil and gas company Capricorn Energy PLC.
Capricorn accepted the terms from DNO, which valued each share at USD5.214 and the company at around USD396 million. It represented a 10% premium to the value agreed with Genel in July.
For its part, Genel on Tuesday said it was "considering its position".
Shares in Capricorn Energy were down 0.2% at 382.12p each on Friday.
By Jeremy Cutler, Alliance News reporter
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