UPDATE 1-Dragon Oil says ENOC won't up offer from 455p/shr

Tue Nov 17, 2009 2:55am EST

Related Topics

* Offer values Dragon at 2.36 billion pounds ($4.0 billion)

* Dragon continues to recommend unanimously the offer

*ENOC is committed long-term majority shareholder

(Adds details)

LONDON, Nov 17 (Reuters) - Dragon Oil Plc (DGO.I) (DGO.L) said Dubai's state-owned refiner Emirates National Oil Co (ENOC) has confirmed it won't increase its takeover offer from 455 pence per share.

The offer values Dragon at 2.36 billion pounds ($4.0 billion).

On Nov 2, Dragon's committee of independent directors advised investors to accept the 455 pence a share bid announced for the 48 percent of the Turkmenistan-focused oil explorer that ENOC does not own. [ID:nL2280324]

However last week, Dragon's largest minority investor Baillie Gifford & Co, whose funds own 4.2 percent of Dragon, said it would reject the offer as it "materially understates the fundamental and strategic value" of the company. [ID:nLB174102]

On Tuesday, Dragon said ENOC remains a committed long-term majority shareholder whatever the outcome of the recommended offer.

Dragon shares closed at 429 pence in London on Monday, valuing the group at 2.2 billion pounds.

(Reporting by Julie Crust; editing by Matt Scuffham)

($1=.5941 POUND)

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