DNO buys more Faroe shares to keep up the pressure

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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

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