STOCKS NEWS EUROPE-DNO up after Sinopec bids for Addax

Shares in Norwegian independent DNO International (DNO.OL) jump 13.2 percent after peer Addax Petroleum (AXC.TO) says it has received an offer from China's Sinopec (600028.SS) at a 47 percent premium to its closing price in Toronto. [ID:nWNBB0581]

Both DNO and Addax are exploring for oil in the Kurdish autonomous region of Iraq.

"Sinopec, a big state owned player, getting into exports from Kurdistan could be game changing," Trond Omdal, an analyst covering DNO at Arctic Securties, says.

"We also regard DNO as a potential takeover target, so in that sense it is not surprising to see the shares move," Omdal says, while adding that comparing valuations is difficult since Addax also has large production outside of Kurdistan.

Reuters Messaging rm://richard.solem.reuters.com@reuters.net