DNO boosts stake in Faroe

Norwegian oil operator DNO has further boosted its stake in Aberdeenbased Faroe Petroleum.

The Oslo firm said in a stock market announcement that it now holds a 28.7% share in the UK and Norway-focussed oil explorer.

It is after DNO managed to acquire a 27% stake in Faroe over three transactions last week, however the firm stated it was not making a bid for the firm. Britain’s takeover code says that a firm publishing a “no intention to bid statement” needs to wait at least six months before crossing the 30% ownership threshold.

Despite DNO’s claims, John Scrimgeour, executive director of the Energy Institute at Aberdeen University, said Faroe should be braced for a takeover. He said: “It’s difficult to understand why else they would be building up such a share in the company.

“The fact that they have gained the shares in the firm, and then gained even more, if you’re Faroe you know that they are after you.” DNO purchased the shares at £1.25 each which Faroe said “undervalued” the firm and its prospects.