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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Mergers and acquisitions in the US oil and gas sector shot up in the second quarter, reaching their highest level in more than seven quarters, according to a report released today by PricewaterhouseCoopers (PwC). Michael Collier, US leader of PwC’s energy M&A practice, says a key reason is that the expectations of buyers and sellers have finally aligned. In addition, he cites improved credit markets, increased CEO confidence and stabilized commodity prices.
According to the report, the US oil and gas sector had 142 announced deals in the second quarter – the highest volume seen since the third quarter of 2008, when there were 190. The total value of the deals was $36.9bn, up from $13.7bn in the year-earlier quarter – representing a 169 per cent increase year on year. Here is what Mr Collier said in the report:
Deal activity in the Oil & Gas sector rebounded significantly in the second quarter – and we expect the momentum to continue throughout the second half of the year. As commodity prices and equity markets continue to stabilize, senior managers are showing greater inclination to do transactions today than we’ve seen over the past two years. At the same time, buyers and sellers are more aligned when it comes to valuations, which is helping to drive the market and to ultimately get deals done.