Burren Energy said it had no contact from an Indian group whose adviser said is plotting a rival bid to a $3.6 billion offer from Italy's Eni, but the oil explorer's shares still rose on hopes of a counter-bid.
Analysts dismissed the prospect of a counter-bid from family-owned Indian firms Adani and Welspun, as an initial deadline for Burren shareholders to accept ENI's 1,230 pence per share bid at 1300 GMT on Thursday approached. Burren Chief Financial Officer Andrew Rose said on Thursday that the company's advisers were attempting to contact their counterparts with the Indian groups.
"It's complete news to us. We've had no contact," he told Reuters in a telephone interview. "We're trying to press them for something more definitive." Burren shares gained in early trading after Darshan Desai, co-founder of London-based investment bank Euromax Capital, told Reuters on Wednesday the Indian consortium was preparing a bid that an official close to the development said could be at 1,320 pence per share.
Burren's management have recommended ENI's bid to investors and the Milan-based oil major has already bought 24.9 percent of Burren's shares on the market and has irrevocable undertakings for 20.98 percent more.
Nonetheless, two sources directly involved in the potential bid said Adani Welspun Exploration Ltd, which is jointly owned by Adani and Welspun, could make a counter-bid as early as next week. Formed a year ago, Adani Welspun Exploration Ltd has been incorporated overseas with an aim to scout for oil and gas assets abroad.
The group hopes to convince hedge funds, which own a big chunk of Burren, to hold out for a better offer and not accept ENI's bid. Mumbai-based Welspun Group has interests in making pipes for the oil and gas industry, and Ahmedabad-based Adani Group has interests in natural gas distribution, ports and related infrastructure.
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