Adani, Welspun combine to counter Eni bid for Burren Energy
10 January 2008
Mumbai: Two Indian business houses, the Ahmedabad-based Adani group and Mumbai's Welspun are planning to jointly counter a bid by Italy's Eni to buy Britain's Burren Energy Plc for $3.6 billion, reports quoting investment bankers Euromax Capital said.
Mumbai-based Welspun group has interests in pipes for the oil and gas industry, while the Ahmedabad-based Adani group is into natural gas distribution, ports and power.
The report also quoted official sources as saying that the Adani-Welspun combine may bid 1,320 pence for Burren, against ENI's bid of 1,230p, valuing Burren Energy at $3.86 billion.
Quoting Darshan Desai, co-founder of the London-based investment bank as saying that the Adani and Welspun groups have firmed up plans to make a joint bid, the report added that it is expected to happen very soon.
Burren Energy has an over 27 per cent stake in Hindustan Oil Exploration Co. It also has assets in Turkmenistan, Congo Brazaville, Egypt and Yemen. Burren currently produces over 35,000 barrels of oil per day.
Burren had said in October that other parties were also interested in buying the company but the only other known party, Korea National Oil Corp., backed out last month saying it was no longer considering making an offer for Burren.
Burren, whose shares are ruling around 1,223p, had earlier rebuffed bids at 1,050p and 1,200p.