Centrica told by Venture shareholders to hike its offer to over 900 pence a share
13 Jul 2009
North Sea oil and gas producer Venture Production's chief executive Mike Wagstaff has said that shareholders will demand an over 900 pence a share from British Gas owner Centrica, after rejecting its hostile 845 pence-per-share offer. (See: UK's Venture Production rejects Centrica's £1.3 billion offer)
Centrica, the UK-based power utility, with interests in North America and Europe, had spent £239 million to acquire a 22-per cent stake in Venture at 725 pence per share in March 2009.
Last Friday, Centrica launched a £1.3-billion hostile bid for the remaining 71-per cent stake it does not own in Venture, after buying 5.4 per cent stake owned by private equity firm 3i and upped its holding in Venture from 22 per cent to about 29 per cent.
On Saturday, Aberdeen-based Venture Production rejected the 845 pence-per-share offer from Centrica, saying that the offer significantly undervalued the company.
However, Centrica had said while launching the hostile bid that its offer of £1.3 billion was final and would not be increased unless there was a counter bid from another company.
Wagstaff acused Centrica of adopting a high-handed stance, when it indicated that its offer was final without having made a prior offer.
