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Faroe Petroleum rebuffs DNO offer again as 'inadequate'

Faroe Petroleum rebuffs DNO offer again as 'inadequate'
FILE PHOTO: The word oil is pictured on an oil bank at a recycling yard in London March 2, 2011. REUTERS/Stefan Wermuth/File Photo -
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Stefan Wermuth(Reuters)
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(Reuters) – Britain’s Faroe Petroleum <FPM.L> reiterated on Thursday its opposition to a hostile bid by Norway’s DNO <DNO.OL>, which it said was “inadequate” and substantially undervalued the Aberdeen-based firm.

DNO last week maintained its offer to buy Faroe in a deal that valued the company at about 610 million pounds or 152 pence per share, insisting it was an attractive offer despite its rejection by Faroe’s board.

Faroe Chief Executive Graham Stewart told Reuters that shareholders he had spoken to have been “very supportive” and pleased with a recent swap deal Faroe undertook with Norwegian firm Equinor, which was criticised by DNO.

He added the takeover bid was also hindering progress on deal talks Faroe was undergoing in Britain and Norway, some of which are at a very advanced stage, but which Faroe might end up losing due to restrictions imposed during DNO’s bid.

Such deals could involve buying or swapping assets that are already in production, Stewart said.

Providing a potential catalyst for further moves within the takeover period running until Feb. 10, Faroe expects to publish drilling results of its Brasse East and Cassidy wells.

(Reporting by Noor Zainab Hussain, Tanishaa Nadkar in Bengaluru and Shadia Nasralla in London; Editing by Sai Sachin Ravikumar and Jan Harvey)

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