http://www.arabianoilandgas.com/article-6643-exclusive-enoc-reacts-to-dragon-offer-rejection/ (original source)
ENOC has declared itself a “committed long term majority shareholder in Dragon Oil” despite the firm having a bid rejected to buy out the remaining shares of the company.
The firm had its offer of 455p a share rejected at a London meeting this week and in a statement made to ArabianOilandGas.com, the firm [...]

http://www.ft.com/cms/s/0/f6a7707e-e2be-11de-b028-00144feab49a,s01=1.html (original source)
Enoc fears backlash from Dragon’s tail
By John Murray Brown
Published: December 7 2009 01:28 | Last updated: December 7 2009 01:28
The shareholders of a small Dublin-listed oil company will take a decision next week that could have big implications for Dubai’s debt crisis.
A special shareholder meeting in a Park Lane hotel on Friday of [...]

http://business.timesonline.co.uk/tol/business/markets/article6941717.ece (original source)
Dragon Oil eased 5½p to 398p after Emirates National Oil Company (Enoc), which is controlled by Dubai, said it would continue to go ahead with its £2.36 billion acquisition of Dragon despite the emirate’s debt problems. There had been speculation that Dubai’s woes could scupper the deal or even force Enoc to sell [...]

Institutional shareholders in Dragon Oil have been rallying against majority shareholder Enoc’s (Emirates National Oil Co) offer of 455p a share, claiming that this undervalues the company.

Now proxy shareholder agency Manifest has rowed in on the issue, raising concerns about the independence of the ‘independent committee’ which recommended the deal.

It’s a small world in the oil business, and Enoc is owned by the Dubai government.

Essentially, Manifest feels that there are too many links between the independent committee and the Dubai government. Manifest said that a non-executive director, a Mr al-Muhairbi, has been involved with Margham Dubai Establishment, a wholly Dubai governmentowned company.

Another non-executive director, a Mr al-Mazrooei, is deputy vice-president of Operations at Dolphin Energy, which has signed a memorandum of understanding with the Dubai Supply Authority to provide gas from its fields in Qatar.

Meanwhile, committee member Nigel McCue stands to gain stg£1.1 million from the exercise of options in the company and subsequent sale of the shares at the bid price.

Ballie Gifford, the largest minority shareholder, Master Capital and Carmignac Gestion have all rejected the current offer, but Dragon Oil has said it won’t increase the price.

The buyout is to be conducted through a scheme of arrangement, and Enoc has stated that it will not vote at the meeting to approve the scheme.

If 12.125 per cent of the remaining shareholders vote against this, the bid will fail an outcome which looks increasingly likely.