DNO Bosses Urged Board to Reject Rak Merger

摘要

The management °f Norway's DNO International in May urged company's board not to proceed with a proposed merger with its largest shareholder, the United Arab Emirates' privately-held Rak Petroleum. In what now appears a major U-turn the deal is now being supported by DNO's management and is set to be voted on by the company's shareholders at a Nov.1 extraordinary general meeting (EGM). In its May 9 report to the board, a copy of which has been seen by Energy Intelligence Finance, DNO's management argued that on the basis of "the significant risks associated to the assets, [he potential-financial burden to acquire the assets and the lack of strategic value, the rhanagement recommends not to proceed with the proposed transaction." The report was signed off by DNO Managing Director Helge Eide, who has recently been leading roadshows with investors aimed at explaining the deal and secur-ing a "yes" vote at the EGM. Presentation materials for these roadshows make no direct reference to the apparent change of heart on the part of management, but do say that the "merger has full support from the DNO management team."