KNOC says $2.6-bn offer is final

Korea National Oil Corporation (KNOC) today refused to raise its $2.6-billion hostile takeover for Dana Petroleum despite the UK-listed oil explorer putting up a valiant defence yesterday to force the South Korean state-owned oil company to raise its offer.

Anyang, South of Seoul-based KNOC reiterated that it will not raise its £18 a share bid in the absence of a competing bid and its offer is full and final.

KNOC's was responding to the Aberdeen, Scotland-based Dana's defence document, which stated that KNOC was unaware of the scale of Dana's exploration programme and the impact of the acquisition of the oil producing interests of Petro Canada when it tabled its £18 offer in July. (See: Dana's defence of Petro Canada acquisition does not sway KNOC, investors)

Dana claimed that KNOC was offering 18 per cent less, while according to independent expert asset evaluation, the UK's largest independent North Sea oil producer is worth at least £21.20 a share and possibly more than £30.

KNOC said in a statement today that its offer ''provides compelling value in cash for Dana shareholders and incorporates full and fair value for Dana's entire portfolio of production, development and exploration assets.''

But the South Korean oil major said that it may consider revising its offer if there was a competing bid and gave Dana's shareholders until 23 September to accept its offer.