Daily Archives: August 23, 2010

FT Energy Source

Here’s the latest from the FT’s Lex on the decision by KNOC to launch a hostile bid for Dana Petroleum:

Korea National Oil Corporation must want North Sea oil badly. Why else go hostile in its £18-a-share approach for Dana Petroleum, which values the UK-listed exploration and production group at nearly £1.9bn? The astonishing agression from the Asian state entity, which has seen similar deals slip away before because it was too timid in its approaches, has raised the stakes all around.

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Small wonder there’s a mini mergers and acquisitions boom at the moment – just at look at the cost of borrowing for big, stable companies like BHP Billiton. Citigroup reckons the $45bn credit facility put in place by the miner to finance its hostile offer for PotashCorp is likely to be just 3-4 per cent. Obviously, this figure needs to be put in the context of sub-3 per cent 10-year US government bond yields and the Fed’s near zero interest rate.  Read more

Masa Serdarevic

Elsewhere this Monday:
- Can we solve two problems at once – unemployment and preparing for power down?
- Analysts warn of threat to oil price stability
- Peak oil alarm revealed by secret official talks
- What did we learn from the Gulf oil spill? Read more

Masa Serdarevic

- BHP in Canadian charm offensive – FT
- Outrage at UN decision to exonerate Shell for pollution in Niger delta – Guardian
- Petrofac first-half revenue jumps 34 per cent on new orders – Bloomberg
- South Korea’s pension service in talks to invest in US oil pipeline – Bloomberg
- Dana aims to convince KNOC to raise offer – FT
- Nuclear plant’s use of river water prompts $1.1bn debate with state – NYT
- Hedge funds cut bullish gasoline bets by most since 2006 – Bloomberg Read more