DNO slams merger block attempt as "frivolous"
Former Chairman seeks to derail RAK Petroleum merger with injunction
Kurdistan-focused Norwegian firm DNO has slammed an attempt by a minotiry shareholder to black a merger of assets from RAK Petroleum as "frivolous" and part of "a campaign of disinformation and factual distortion."
Petrolia, an investment vehicle effectively controlled by DNO's former chairman Berge Gerdt Larsen, and fellow shareholder Erik J Frydenbo have filed an application for an injuction in Oslo in an attempt to prevent the merger, on fears it gives RAK Petroleum undue interest in DNO and dilutes the value of the fund's shareholding.
"DNO is of the clear view that the request is completely without merit and will vigorously defend against it," said the company in a statement today. "The merger was adopted by a strong majority at the extraordinary general meeting on 1 November 2011, and the merger is expected to be completed in January 2012."
In November Petrolia offered to purchase up to a third of DNO’s shares at NOK 10 ($1.78) a share. Larsen would then seek to achieve a minimum price of NOK 12 ($2.14) a share by selling or reorganizing the company.The plan found few takers and was strongly criticised by DNO's executive Chairman Bijar Mossavar-Rahmani..