DNO buys more Faroe shares to keep up the pressure

Market news
Market news

Norwegian oil firm DNO said today that it had snapped up more equity in takeover target Faroe Petroleum.

Oslo-based DNO bought another 2.75 million Faroe shares, giving it ownership of 30.6% of the Aberdeen-headquartered firm.

Investors holding 13.1% of Faroe had accepted DNO’s acquisition offer of £1.52 per share by Wednesday afternoon’s deadline.

Under the proposals, DNO said it would only pay out if it secured enough acceptances to give it more than 57.5% of Faroe.

But the acceptance condition was reduced to 50% when DNO crossed the 30% threshold yesterday morning, triggering a mandatory offer.

The closing date for the offer was extended to 1pm on January 18.

The latest acquisition, announced this morning, means DNO would be on 43.8%, just over 6% shy of the acceptance condition.

Read more: DNO not accepting defeat in Faroe takeover bid