Bowleven could be Dragon's new flame
The City's inability to keep a secret was highlighted yet again on Friday morning as Bowleven's share price surged, prompting fellow oil and gas company Dragon Oil to admit it is running the rule over the company.
The City's inability to keep a secret was highlighted yet again on Friday morning as Bowleven's share price surged, prompting fellow oil and gas company Dragon Oil to admit it is running the rule over the company.
Shares in BowLeven, which has oil and gas assets in West Africa, moved up steadily throughout the morning to just under 90p from their overnight level of 74p, before kicking into overdrive as Caspian Sea-focused oil and gas giant Dragon Oil confirmed its interest.
Dragon Oil, which is listed in both the UK and Ireland, said it is only in the early stages of deciding whether to launch a bid for BowLeven, and said that confirmation of its nascent interest does not constitute an announcement of a firm intention to make an offer under Rule 2.7 of the City Code on Takeovers and Mergers.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Under City rules, Dragon Oil has to make a bid for BowLeven or walk away - "put up or shut up" in City parlance - by no later than 5:00pm on March 16th.
If it does walk away, it will be prevented from making an offer for BowLeven for six months unless a rival bidder emerges.
Bowleven had no comment to make about the Dragon announcement, other than to acknowledge it had seen it and to offer to let shareholders know if there are any further developments.
The shares of BowLeven shot up to 134.75p in the wake of Dragon's announcement before pulling back to around 124p at the end of the lunch-time trading session.
jh
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
5 steps to shield your money from the taxman before the Budget
Experts have warned Labour is planning a tax raid in its upcoming Budget. We share five steps to shield your money from the taxman
By Katie Williams Published
-
The trading apps that let you put fractional shares in an ISA
Advice HMRC is set to change ISA rules to allow fractional shares to be included in the tax wrapper. Here are the trading platforms and trading apps that support this.
By Marc Shoffman Published