Dana Petroleum shares soar as Korean firm looks to buy
SHARES in takeover target Dana Petroleum have rocketed 23 per cent over the past several days in response to confirmation that the Korean National Oil Company (KNOC) is in preliminary talks about acquiring the firm.
Shares are at their highest level since last August, when Dana was subject to similar takeover rumours. They remained broadly flat at £14.43 yesterday in subdued trading across the FTSE 250 due to the American bank holiday.
But investors will be watching the price closely as it approaches £16.45, the value per share of KNOC’s rumoured £1.5bn price tag for the firm.
Analysts are not all convinced a deal will be finalised. “Holders should sit tight for now to see if an early deal can be struck or an alternative bidder is forthcoming,” said BNP Paribas.