KNOC so hostile

20 August 2010 By Una Galani Follow @ugalani

The Korean oil group has run out of patience with the UK firm and launched a rare unsolicited bid by a stateowned firm. With almost 50 pct of shareholders supporting the 18poundashare offer, KNOC should snatch its prize even if Dana pursues its own M&A ambitions.

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Korea National Oil Corp. on Aug. 20 launched a 1.9 billion pound ($2.9 bln) hostile takeover of Dana Petroleum, after the board of the British firm earlier this month rejected its allcash 1,800 pence per share offer.

The offer already has expressions of support from 48.6 percent of Dana's shareholders. It becomes unconditional if 50 percent accept the offer, though KNOC needs acceptances of 75 percent to delist Dana's shares.

Top investors including Schroders, BlackRock and JPMorgan Asset Management have previously urged Dana's management to engage with the board.

KNOC's offer, which has been raised once already, represents a 59 percent premium to the closing price on June 30, a day before Dana's board disclosed it had received an approach.

The offer follows KNOC's acquisition in October of Canada's Harvest Energy Trust for $1.7 billion.

At 0900 GMT on Aug. 20, Dana shares were up 5.6 percent at 1789 pence.

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