Knoc provides proof of funding for …
Saturday, July 31st, 2010 Uncategorized.
By Louise Armitstead, Chief Business Correspondent
Published: 7:00AM BST 31 Jul 2010
Dana Petroleum
The epistle, which was delivered to Dana representatives on Friday, will heap straits on Dana’s board to end the current stand-off and be severed talks with the Koreans.
Shareholders in Dana are growing frustrated with the decision of Dana’s management, led by Tom Cross, not to bind with the Korean National Oil Company (Knoc) since its proposal of a turn into money takeover at £18-a-share.
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In a tersely-worded report last Friday, Dana said it had received an “unsolicited” letter from Knoc goal that the approach had not included details of the deal including “encouragement on financing and other execution risks”.
The latest letter contained settlement from a series of Asian banks that they are prepared to back Knoc.
One Dana shareholder related: “It was pretty odd for Dana to ask for proof of funds at this arena but it’s clearly a sign of Knoc’s commitment that they rapidly provided it.”
Since last week’s statement, Dana has ignored calls from Schroders, its biggest investor by a 16pc stake, urging the oil company to consider the be at hand.
Other top shareholders, including Black Rock and JP Morgan Asset Management, the visitor’s second and third biggest investors, are also thought to back calls to spasmodic effort proper takeover talks.
Knoc has had informal conversations with Dana’s shareholders this week to exhibition support for the deal. Sources close to the situation said these investors encouraged Knoc to push in opposition .
Investors are concerned Mr Cross is holding out for an unrealistic recompense. He has a stake of 2pc in the company he co-founded in 1994 and stands to travel over £30m from a sale.