Dana to rebuff KNOC

Marion Dakers
DANA Petroleum will this week try to shore up its position in the face of a £1.87bn hostile takeover bid by the Korean National Oil Corporation (KNOC), as it announces interim results and reveals more about its Canadian acquisition plans.

Dana’s results on Friday are expected to give details of the £200m planned purchase of Suncor Energy in Canada, and post increased growth through oil finds in the North Sea.

South Korean state-owned KNOC has previously claimed to know the details of the Suncor acquisition, and said it will not alter the overall value of the company.

The board of Dana is expected to continue shirking KNOC’s advances this week. It told shareholders last Friday to “take no action in respect of the [hostile] offers” in a hint that it hopes KNOC will increase its bid.

However, KNOC said it has bagged letters of intent from 49 per cent of Dana’s shareholders, including several hedge funds, in support of its £18 a share offer.

Supportive hedge funds including Eton Park, Jabre Capital and Centaurus have bought contracts for difference amounting to more than a quarter of Dana’s issued shares, giving them the power to vote on takeover offers.

Dana founder and chief executive Tom Cross stands to gain around £37.4m if a sale goes through.