ABERDEEN-based Faroe Petroleum has become embroiled in a spat with a leading shareholder which wants a boardroom shake- up at the North Sea- focused oil and gas firm.
DNO of Norway wants its executive chairman Bijan Mossavar-Rahmani appointed to Faroe’s board with managing director Bjørn Dale.
The firm has submitted a requisition for an extraordinary general meeting at w hich Faroe shareholders could vote on the proposal.
Faroe said board members intended unanimously to recommend shareholders against DNO’s resolutions.
In a stock exchange announcement, Faroe said: “The Board believes that the Proposed Resolutions are wholly self-serving and are part of an undisclosed strategy on DNO and Mr Mossavar-Rahmani’s part to try and gain control of Faroe’s business without making an offer to all shareholders at an appropriate premium.”
Faroe said the two firms competed in Norwegian waters meaning there were potential conflicts of interest between them.
DNO has built a 28.23 per cent stake in Faroe since the start of April after focusing on the Middle East.
The company said that month it had decided to build a long-term strategic shareholding in Faroe and to support Faroe Petroleum management’s growth focused North Sea strategy. On April 4 DNO said it did not intend to make an offer for Faroe.
In its interim results announcement yesterday DNO said it retained indirect interests in North Sea assets through its strategic stake in Faroe.
DNO said given the size of its shareholding it would request seats on the Faroe board and had asked for an EGM to be called for this purpose.
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