South Korea’s national oil company KNOC has upped its bid for Aberdeen’s Dana Petroleum to nearly £1.7billion.The Far Eastern firm revealed yesterday it was now offering £18 a share – an increase of £1 on last month’s initial approach.It said its “indicative cash proposal” was subject to a number of pre-conditions, including KNOC being granted access to carry out satisfactory due diligence.

But Dana advised its shareholders last night not to take any action in response to the announcement, saying the South Korean firm had failed to highlight critical pre-conditions that were part of an indicative offer letter received on July 14.According to Dana, these would mean the Aberdeen company agreeing not to solicit – either directly or indirectly – alternative offers from other parties at key stages of the process.

It would also mean Dana agreeing “on terms satisfactory to KNOC” to give the Far East firm the right to match a competing offer.Dana added that KNOC was also seeking an exclusivity agreement to deter other suitors.In addition, Dana said it had repeatedly offered KNOC’s bosses the chance to meet its chairman and chief executive to discuss and progress the proposal, but the South Korean firm had not taken up the offer.If a deal is done, Dana chief executive Tom Cross could pick up more than £34million from the sale of one of Europe’s top independent oil and gas firms.Courtesy:The press and Journal