DNO has praised the Faroe Petroleum team after winning a bitter battle for control of the Aberdeen-based oil and gas firm with a hostile bid that valued it at £640 million.

Norway’s DNO disclosed that it had acceptances for its hostile offer in respect of 72.8 per cent of the share capital of Faroe. The bidder passed its 50% target on Wednesday after increasing its cash offer to 160p per share from 152p. Led by chief executive Graham Stewart, who helped establish the company in 1998, directors of Faroe had maintained DNO’s bid was an opportunistic attempt to buy the firm on the cheap.

Executive chairman Bijan Mossavar-Rahmani said DNO attached great importance to retaining the knowledge and expertise of the Faroe team.

“It is in the nature of our industry that entrepreneurs with vision, fortitude and a dollop of luck can create small, successful companies that are in time sold to larger ones with greater managerial and operational depth and stronger financial firepower and which, in turn, are swallowed by even larger companies,” observed Mr Mossavar-Rahmani. He added: “Faroe had a good run. The baton now passes to DNO.”

In its offer document DNO said if the transaction completed it foresaw changes to representation on the Faroe board in order to strengthen corporate governance.