NORTH SEA-focused Deltic Energy has seen off a second unsolicited takeover approach in quick succession.
Independent Oil & Gas (IOG) announced last month that it was considering making an all-share offer for Deltic.
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However IOG said yesterday it did not intend to make an offer It cited the absence of Deltic board engagement both on an initial approach made on August 26 and on a second approach made on September 25 on improved terms, which was rejected on 2 October.
Independent has won backing from US billionaire Warren Buffett for its plans to develop a cluster of gas finds in the North Sea.
It said: “IOG believes that, at the right level, a transaction would have considerable industrial logic, consolidating and scaling up two complementary portfolios with a balance of near-term catalysts and longer-term upside.”
Deltic said that following a review it had concluded that the terms of IOG’s amended proposal continued to materially undervalue the company and its portfolio of assets.
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In July Deltic spurned a £12m bid approach from Reabold Resources on the grounds it undervalued the company.
Reabold announced the following month that it did not intend to make an offer.
Either bidder could have allowed shareholders to Deltic to consider whether or not to decide to back its bid by making a hostile offer for the firm.
They would not have been able to complete due diligence on their target in advance of making such an offer.
Deltic said yesterday that following the IOG approach directors had had discussions with certain of its key shareholders who expressed their continued support for the company.
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