MUMBAI Feb 28 The overseas investment arm
of Indian oil producer Oil and Natural Gas Corp and
gas distribution company GAIL India Ltd plan to offer
$2 billion to acquire UK-based Cove Energy Plc, the
Times of India reported on Tuesday.
The planned offer by the two state-run Indian companies will
beat a $1.76 billion bid by Thai state-controlled oil and gas
group PTT and Royal Dutch Shell Plc's offer
worth $1.6 billion earlier this month.
ONGC Videsh Ltd and GAIL could make their combined bid this
week, the newspaper said, citing sources familiar with the
They may value London-listed Cove at 245 pence-a-share, it
said. PTT said on Friday it planned a 220 pence-per-share bid,
trumping Shell's offer for Mozambique-focused Cove.
Cove's main asset is an 8.5 percent stake in the Rovuma
Offshore Area 1, in Mozambique, where another operator Anadarko
said recoverable reserves could top 30 trillion cubic
feet of natural gas.
Indian firms Bharat Petroleum Corp and Videocon
Industries Ltd own 10 percent stake each in the Rovuma
Officials at ONGC and GAIL could not be immediately reached