Dragon Oil take over?
LONDON, June 4 (Reuters) – Oil and gas explorer and producer Dragon Oil has received a preliminary offer approach, the Dubai state-controlled company said on Thursday, sending its shares up over 20 percent.
“The approach is of a preliminary nature and there can be no certainty that any offer will be made or as to the terms of any such offer, should one be forthcoming,” Dragon Oil said in a statement. A spokeswoman for the company declined to comment further. (I think she was counting her money…….rumour that Sir Alan Sugar was also visiting Gordon Brown to gloat over his new investment is unfounded too….)
Dragon’s shares jumped to an 11-month high on the news and closed up 64.5 pence at 395 pence at 1521 GMT, valuing the company at around 2 billion pounds ($3.28 billion).
The statement comes a day after oil exploration company Heritage Oil said it was in early-stage merger talks.
The Emirates National Oil Company (ENOC) owns 52 percent of Dragon, according to Reuters data.
Buy on news , sell on rumour comes to mind. Shame I sold up ages ago at £2 a share, though will look to get back in if price goes a little lower. Doh!