* DNO offers 69 pence per share in cash, valuing Genel at
£202 million
* Genel agreed in principle to buy Capricorn Energy for $360
million in cash in July
* Elsewhere, Ratio Petroleum sweetens its Pharos approach
(Adds context, comment, shares, graphic throughout)
Aug 7 (Reuters) – Norwegian oil firm DNO said on
Friday it had made a £202 million ($271.8 million) takeover bid
for Kurdistan-focused rival Genel Energy late last
month but had been rejected.
Shares in Genel were up nearly 14% in London trade at 57
pence as of 0725 GMT, wiping off most of their 17% year-to-date
losses.
Dealmaking among oil companies operating in the Middle East
is gathering pace as a surge in oil prices since the onset of
the Iran war has enabled some energy firms focused on the region
to pursue mergers and acquisitions.
Separately on Friday, Israeli oil firm Ratio Petroleum
raised its proposal to buy London-listed Pharos
energy, which has major operations in Egypt, in a
bidding war with Serica Energy.
DNO, which is in partnership with Genel in the Tawke field
in Iraq’s Kurdistan region, made its bid on July 28, proposing
to pay 69 pence per share in cash, a premium of over 38% to
Genel’s last close.
Genel declined to comment on DNO’s proposal.
Genel itself had agreed in-principle in July to buy
Egypt-focused Capricorn Energy in a $360 million
all-cash deal, though other suitors for Capricorn are circling
the firm.
DNO said its proposal for Genel was not conditional on the
outcome of Genel’s pursuit of Capricorn Energy.
“(The proposal) provides certainty of value irrespective of
the outcome of Genel’s offer for Capricorn… which, if
unsuccessful, would leave Genel without the diversification it
has long sought,” DNO said in a statement.
Oil firms operating in the Kurdish region have been
grappling with tough operating conditions, including multiple
production and export suspensions due to geopolitical tensions
in the region that have lasted several years.
Genel holds a 25% working interest in the DNO-operated Tawke
production-sharing contract.
Risers and Fallers Corporate News Market News Oil & Gas Dno 
Genel Energy 
Pharos Energy 
Serica Energy 
Capricorn Energy PLC
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