UPDATE 2-KNOC CEO says no plan to raise $2.6 bln Dana offer

* KNOC CEO says believes offer full and fair

* No plan to raise $2.6 bln hostile offer for Dana

(Adds links to graphics, factboxes, breakingviews)

SEOUL, Aug 24 (BestGrowthStock) – State-run Korea National Oil Corp
will not consider raising its $2.6 billion hostile takeover
offer for British oil explorer Dana Petroleum (DNX.L: ) in return
for management backing, KNOC’s chief executive said on Tuesday.

“We believe our offer values Dana fairly and fully and
have no plan to consider raising it,” KNOC chief executive Kang
Young-won told Reuters on the sidelines of a forum of Asian
state oil companies in Seoul.

KNOC launched a hostile 1,800 pence a share offer, worth
1.67 billion pounds ($2.6 billion), on Friday after it failed
to win Dana’s board approval for its proposal, and said it had
received nearly 50 percent of shareholder backing.

South Korea has given KNOC a $6.5 billion warchest this
year to compete with energy-hungry Asian state firms looking to
secure supplies for their growing economies and also to cut
South Korea’s almost total dependence on imported oil.

Chinese and other firms have so far outgunned KNOC, which
is involved in oil exploration and storage, in bigger M&A


For StarMine comparative data: http://r.reuters.com/gup26n

For graphic on key deal stats:

For graphic on KNOC/DANA overseas oil and gas investments:


For Breakingviews: [ID:nLDE67J0FA] [ID:nTOE60J04W]

For a Factbox on KNOC: [ID:nTOE67J026]

Investors have said with two months having passed since
KNOC’s approach, Dana needed to quickly produce another bidder
or other material reasons why the offer undervalued the

Some investors have said Dana’s reluctance to accept what
many analysts see as a generous offer was related to chief
executive Tom Cross’s close ties to the company.

The Financial Times reported on Monday that the Dana board
plans to use its interim results later this week as a platform
to stress value and hoped the attraction of a board seal of
approval would lure KNOC back to the negotiating table with a
higher offer. [ID:nTOE67M00G]

Dana, which has hinted that it is in talks about a major
acquisition, is in advanced talks to buy UK North Seas fields
from Canada’s Suncor Energy (SU.TO: ), according to sources close
the matter. [ID:nLDE67G1JU]

The KNOC/Dana deal, if agreed, would be the biggest hostile
acquisition by a South Korean firm and biggest ever deal for
KNOC, which purchased Canadian group Harvest Energy last
October for $1.7 billion. (Reporting by Miyoung Kim; Editing by
Jonathan Hopfner and Valerie Lee)

UPDATE 2-KNOC CEO says no plan to raise $2.6 bln Dana offer