Enterprise Oil plc Abandons Hostile Bid for Lasmo plc

Enterprise Oil plc has bowed out of its hostile bid for Lasmo plc after failing to secure sufficient acceptance from the target company's shareholders. The bid, which was launched in April, had been marred by controversy and difficulties in convincing Lasmo's investors to accept the offer. Despite attempting to revise its terms and sweeten the deal, Enterprise was ultimately unable to secure the necessary support, and the bid lapsed. This decision brings an end to a tense and protracted battle between the two oil and gas explorers.

Key Takeaways:

• Enterprise Oil plc has abandoned its hostile bid for Lasmo plc after failing to secure 32.8% acceptances from Lasmo's shareholders, including its own 9.8% stake.
• The bid, which was launched in April, had been marked by controversy and difficulties in convincing Lasmo's investors to accept the offer.
• Enterprise revised its terms twice, increasing the offer price from $2.32 to $2.55, but still refused to make a full cash offer.
• Lasmo's long-suffering shareholders were offered twice the dividend they could have expected to receive for the foreseeable future through Enterprise's new A shares.
• The paper/cash controversy surrounding the bid has raised questions about Enterprise's financial strategy and its treatment of shareholders.

Statistics:

• Enterprise Oil plc acquired 9.8% of Lasmo plc's shares for $247 million cash.
• The bid had been valued at $2.55 per share, which is $0.23 more than the revised offer price.
• Lasmo's market capitalization at the time of the bid was approximately $1.9 billion.
• The bid lapsed after failing to secure 32.8% acceptances from Lasmo's shareholders.

Sources:

• "Enterprise gives up bid for Lasmo," Financial Express, 23 July 1993.
• "Lasmo chairman harshly criticizes Enterprise Oil's bid," Financial Times, 20 July 1993.
• "Enterprise Oil lifts bid price for Lasmo," The Times, 8 July 1993.
• "Enterprise Oil buys 9.8% stake in Lasmo," The Financial Times, 14 July 1993.