Oil barons share £52m after takeover defeat
THE bitter fall of Faroe Petroleum to a takeover at the hands of its largest shareholder will hand the North Sea oil explorer’s management over £52m, including a £12m windfall for its chief executive.
Graham Stewart was forced last week to surrender the £647m company he founded in the late nineties after Norwegian oil giant DNO wrested control. But once the predator declares victory in the coming days Mr Stewart will be free to leave with shares worth almost £4m and total share options of £8.5m.
Mr Stewart and his board capitulated after a nine-month battle with DNO which began its campaign to take control of Faroe in spring last year by snapping up a quarter of the Aberdeenbased company.
Last week it laid claim to over half of Faroe’s shares after offering shareholders a price of 160p a share in cash to walk away. In total the company’s di- rectors are expected to walk away with around £7.7m from their shares, and another £18.7m in share options.
Around 88 Faroe employees will also claim a share through share options worth £26m.
DNO’S takeover plot has cost the company around £9m in advisory fees including £4.5m to its bankers, £1.9m to lawyers, £850,000 to public relations handlers, and £50,000 to the company’s accountants.