Lasmo plans defence
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.LASMO, the oil explorer facing a hostile pounds 1.4bn takeover from Enterprise Oil, is planning to defend itself by throwing the spotlight on its rival's track record over the past five years.
The company's advisers - Goldman Sachs, Natwest Securities and Schroder - are understood to have decided the main planks of the defence strategy even though the bidder's offer document is not expected to be sent to shareholders until Tuesday.
The defending camp has identified Elf Enterprise, the North Sea venture owned jointly with the French Elf group, as a possible Achilles' heel. It is expected to question its performance and focus on how Enterprise accounts for it. One aim is to establish whether the venture has a negative asset value.
Lasmo, headed by Rudolph Agnew, whose appointment as chairman was brought forward last week, is also expected to spearhead an attack on Enterprise's dividend cover, using US accounting policies, cash-flow and exploration records over the past five years. Lasmo's tactics could also aim to highlight differences between the two companies' future strategies. 'Their strategy is to get big, and Lasmo wants to be focused,' a source said.
It is understood that Lasmo has already received informal approaches from several possible suitors keen to act as white knights. But the feelers have been rebuffed for now. Possible predators are US oil companies ants Arco and Mobil, and PowerGen, the generator.
Meanwhile, Swiss Bank is attempting to elbow its way into the bidding camp with proposals aimed at bolstering Enterprise's firepower. But the pitch is thought to have been rejected by Enterprise, which is headed by Graham Hearne and advised by SG Warburg, Robert Fleming, James Capel and Lehman Brothers.
Patrick Hosking, page 2
Oil firms in firing line, page 6
(Photograph omitted)
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments