Dragon Oil's largest minority shareholder Baillie Gifford isn't impressed by Emirates National Oil Company's (ENOC) £3.7bn takeover offer for the oil explorer.
The Edinburgh-based asset manager, which owns a 7.2 per cent stake in the company, said the offer "materially undervalues the company's strong growth potential and encourage shareholders to reflect on the growth infrastructure that is presently being assembled".
But ENOC has hit back saying: "We are confident that our recommended offer of 750 pence per share is full and fair as it represents an attractive exit opportunity for all minority shareholders."
"The offer price was derived based on extensive feedback from numerous shareholders, and the independent committee of Dragon Oil, which has stated that the recommended offer reflects the achievements and future prospects of the Dragon Oil Group."
ENOC already has a 53.9 per cent stake in Dragon Oil. It needs the majority of the other shareholders to agree to the deal, around 23 per cent. ENOC will then delist it from the Irish and London stock exchanges.
ENOC has long had its eye on Dragon Oil.
It first made an offer of 650 pence per share in March, which it then raised to 735 pence per share in May, and this came after a rebuffed offer made back in 2009.
Shares in Dragon Oil closed down 0.76 per cent to 722.5 pence per share this afternoon.