IOC - OIL may not hike bid for Gulfsands

Indian Oil Corporation (IOC) and Oil India Limited (OIL) do not plan to raise their $570 million unsolicited bid for Gulfsands Petroleum, after the Middle East-focused gas exploration and production company rejected the takeover offer as inadequate. (See: Gulfsands rejects IOC-OIL combine's $570 million bid)

"We feel we've made what is a reasonable offer and now it's up to management to make the next move," said Jonathan Wright, a banker at investment house Seymour Pierce, which is advising the Indian oil companies on the deal.

"There's no other bidder. We don't see any need to increase our offer," he added in a telephone interview with Reuters.

Public sector oil marketing companies IOC and OIL had jointly made an $570 million unsolicited acquisition offer on 18 March for the London-based and AIM-listed independent oil and gas explorer Gulfsands.

The board of Gulfsands, without naming the bidding company, had rejected the unsolicited takeover offer on 20 March, saying that the $570-million offer ''Is wholly inadequate and materially undervalues the company.''

Citing a source close to the deal, The Financial Times, had said on the same day that the mystery bidder was IOC and the Indian oil marketing major would consider its options over the weekend, and could raise its offer. (See: Indian Oil may hike its £400 million unsolicited bid for Gulfsands Petroleum)