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KNOC unrelenting on offer for Dana Petroleum

Korea National Oil's offer of £1.6bn is final, according to the state-owned energy company.

Korea National Oil (KNOC) has said that its offer of £1.6bn for British exploration company Dana Petroleum is final.

The state-owned South Korean energy company, which is aiming at a hostile takeover of Dana, said in a statement that the defence document released by the target company does not change its stance.

KNOC said the only scenario in which it would consider increasing the bid offer was if another bidder entered the race.

The offer of £18 per share "provides compelling value in cash for Dana shareholders and incorporates full and fair value for Dana's entire portfolio of production, development and exploration assets," the company said.

In its defence strategy brought out on Wednesday, the Aberdeen-based Dana said that KNOC's offer would "utterly fail" to compensate the company's shareholders adequately.

The company was worth at least 18 per cent more than the value of the bid, it claimed.

In addition, the company also disclosed details such as its £240m acquisition of some North Sea fields, whose value it claimed could quadruple in the next two years.

Dana's largest shareholder, Schroders, is ready to support the deal with KNOC and has argued that the information does not change the value of the bid.