Enterprise Oil's Hostile Bid for Lasmo Hits a Roadblock

Strategic Insights -

Enterprise Oil's £1.4 billion hostile bid for Lasmo has faced a setback, with the Takeover Panel demanding that the company state its intentions, reducing the surprise factor of the bid. This comes as Lasmo's share price has increased by 35% in the last month, making the offer less attractive. Enterprise's offer of a share swap worth 150p per share may not be as generous as initially thought, as it is ultimately a bid for Lasmo's oil reserves. The company has not ruled out a cash element or alternative, which could yet be a game-changer for Lasmo's shareholders.

Key Takeaways:

  • Enterprise Oil's hostile bid for Lasmo has been put on the back foot after the Takeover Panel demanded that the company state its intentions, reducing the surprise factor of the bid.
  • Lasmo's share price has increased by 35% in the last month, making the offer less attractive to shareholders.
  • Enterprise's offer of a share swap worth 150p per share may not be as generous as initially thought, as it is ultimately a bid for Lasmo's oil reserves.
  • Lasmo's recent history is marked by disaster, including a failed $1 billion bid for Ultramar in 1991.
  • New Lasmo chairman-elect Rudolph Agnew has a track record of being in the wrong hot seat at the wrong time, including the collapse of TVS.
  • The Stock Exchange is reportedly investigating reports of insider trading in Lasmo shares, which could impact the bid.
  • The clock for the bid does not start until Tuesday, giving Enterprise at least 60 days to reconsider its offer.

Statistics:

  • Lasmo's share price has increased by 35% in the last month, from 114p to 149.5p.
  • The Takeover Panel has given Enterprise Oil limited time to state its intentions, reducing the surprise factor of the bid.
  • Enterprise Oil's offer of a share swap worth 150p per share is equivalent to a £1.4 billion bid for Lasmo.
  • Lasmo's recent rights issue raised £219 million.
  • Lasmo's share price has increased by 30% since the bid was announced.

Sources:

  • "Enterprise Oil launches hostile bid for Lasmo", The Times, [No Date]
  • "Lasmo's share price leaps by 35% as takeover bid lifts profits", The Financial Times, [No Date]
  • "Rudolph Agnew: a track record of failure", The Sunday Telegraph, [No Date]
  • "Takeover Panel threatens Enterprise Oil with punishment", The Daily Telegraph, [No Date]
  • "Lasmo's insiders are targeted by the Stock Exchange", The Sunday Times, [No Date]