KNOC Launches Hostile Bid for U.K.'s Dana

South Korea's state-run Korea National Oil made a hostile cash bid of 1.87 billion pounds ($2.9 billion) for the U.K.'s Dana Petroleum.
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Updated from 4:06 a.m. EDT

SEOUL, South Korea (

TheStreet

) -- Britain's

Dana Petroleum

confirmed Friday a bid of 1,800 pence a share was made for the company by South Korea's state-run

Korea National Oil

.

The hostile cash bid for Dana amounts to 1.87 billion pounds ($2.9 billion).

In a statement to the London Stock Exchange, Dana said it "advises shareholders and convertible bond holders to take no action in respect of the offers."

It was reported earlier that Korea National Oil offered 1,800 pence a share to buy Dana's convertible bonds. Korea National said it received letters of support from shareholders representing about 49% of Dana stock, according to

Bloomberg

.

Korea National needs the backing of 75% of Dana shareholders for the deal to go through, according to

Reuters

.

The bid from KNOC comes after Dana's management earlier in August rejected KNOC's proposal of 1,800 pence a share. The offer represents a premium of 59% to the closing price of Dana shares on June 30, the day before Dana said it had received an initial approach from KNOC,

Reuters

says.

Korea National is Asia's fourth-biggest oil importer, according to

Bloomberg

. Dana focuses its exploration efforts on the North Sea and Africa.

-- Reported by Joseph Woelfel in New York.

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