August 27, 2018 / 4:28 PM / 22 days ago

UPDATE 1-DNO withdraws request for Faroe board seats as conflict escalates

(Adds Faroe comment)

OSLO, Aug 27 (Reuters) - Norwegian oil firm DNO on Monday withdrew its request for seats on the board of Faroe Petroleum amid an escalating war of words between the companies.

DNO, Faroe’s top shareholder, had asked for an extraordinary general meeting (EGM) of shareholders to be held to put two of its executives on the board, a move which Faroe had resisted.

“DNO ASA withdraws the request ... and notes with deep disappointment Faroe Petroleum’s repeated peremptory and disdainful attitude to such representation for, and therefore greater engagement with, its largest shareholder,” it said.

DNO said it had also sought to raise “concerns and dismay” over Faroe’s wider governance culture and shareholder value strategies, and that it would now “consider its position”.

Earlier this year, DNO built a 28.23 percent stake in Faroe, prompting speculation about a full takeover, although DNO said it had no intention of launching a full takeover bid.

The board of London-listed Faroe has previously argued that adding DNO’s representatives to its board could cause conflicts of interest.

“Faroe has noted the DNO statement and welcomes the withdrawal of their EGM request. We continue to maintain an open dialogue with all our major shareholders,” a Faroe spokesperson said on Monday. (Reporting by Terje Solsvik and Shadia Nasralla; editing by Jason Neely and Adrian Croft)

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