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DNO Drops Bid for Genel, Blames Board for Lack of Engagement

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Norwegian energy firm DNO said on Friday it would not make an offer for Genel Energy, ending its pursuit of the oil producer after Genel's board declined to engage with its proposal.

DNO had proposed paying 69 pence in cash for each Genel share, with an alternative that would allow shareholders to receive DNO shares.

The Norwegian firm said the proposal would have provided a premium over Genel's undisturbed share price while giving investors a way to exit amid weak liquidity in Genel's stock.

The decision comes as Genel faces continued uncertainty surrounding its sole revenue-generating asset and its efforts to acquire Capricorn Energy.

DNO argued that the Capricorn transaction, if unsuccessful, would leave Genel without the diversification it has sought and with general and administrative costs that are too high relative to its current scale.

The energy firm also criticized Genel's board for refusing to engage with its proposal despite repeated invitations. DNO said shareholders had been denied the opportunity to consider an offer that provided a premium and value certainty.

DNO said its proposed merger would have created a stronger operator in Iraq's Kurdistan Region, where it sees security and commercial risks making scale and financial strength increasingly important.

The company said it is reserving limited rights to revisit its decision under UK takeover rules.

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