* The fund may make offer on its own or as part of
* May offer to buy part of Essar Energy's bonds due 2016
* Essar Energy's shares close up 10 pct
(Adds comments from the company and shareholder, background)
Feb 14 Essar Energy Plc's largest
shareholder, Essar Global Fund Ltd, said it was considering
making an offer for the 22 percent stake it does not own in the
London-listed oil and gas producer.
The fund said in November it would sell shares to dilute its
78.02 percent stake in Essar Energy so the company met UK
listing requirements, which mandate that at least 25 percent of
a company's stock be available for trading.
Since then, Essar Energy's shares have lost about 38 percent
of their value until Thursday. They closed up 10 percent on
Essar Global said on Friday it could make an offer on its
own or as part of a consortium at a "modest" premium to Essar
Energy's Thursday close of 60 pence on the London Stock
Essar Energy declined to comment.
The company's second-largest shareholder, Capital World
Investors, said it could not disclose if it planned to
participate in a bid.
Essar Global said there was no certainty it would make an
offer, and until then it would not transact in the shares of the
company even to meet the free float requirement.
Essar Global also said it may offer to buy Essar Energy's
4.25 percent convertible bonds due 2016.
The oil and gas company is controlled by privately held
Indian conglomerate Essar Group, which has interests in steel,
shipping, power and other sectors.
Essar Energy's shares closed at 66 pence, making the stock
one of the top percentage gainers on the FTSE-250 Midcap Index
(Reporting by Aashika Jain and Esha Vaish in Bangalore; Editing
by Savio D'Souza and Don Sebastian)