Burren says no takeover attempt from Adani, Welspun

UK energy firm denies reports of likely counter bid by the Indian companies.

British oil and gas exploration company Burren Energy, which has agreed to a $3.6 billion takeover by Italy's Eni, today said it had not received any counter bids from India's Welspun Group and Adani Group.

Reacting to media reports that it has been approached with fresh takeover proposals, Burren Energy said in a regulatory filing with the London Stock Exchange that "it has had no contact with parties named (in reports), being Welspun Group, Adani Group or Euromax Capital".

"The board confirms that no discussions have taken place nor due diligence undertaken and that it has received no proposal or offer from these parties," it said.

Burren Energy stressed that "there can be no certainty that this speculation will lead to an offer being made for Burren nor as to the terms on which any offer might be made."

A report in the Financial Times had said that Adani and Welspun, were poised to make a counter bid for the oil firm. According to various media reports, the bid from Eni is scheduled to close today and it would announce the outcome of its offer tomorrow.

The Financial Times report said that any rival offer for Burren faces formidable obstacles, as the Italian oil company has already built a 24.9 per cent stake in it, which has acceptance from directors, and others controlling a further 21 per cent.

Eni had agreed in November to acquire Burren with a £12.30 a share offer and any counter bid would have to be at least £13.20 to stand a chance, the Financial Times said.

Burren Energy produces 35,000 barrels of oil a day and has assets in Turkmenistan, Congo Brazaville, Egypt and Yemen. It also has a stake in Hindustan Oil Exploration Co.

A Reuters news agency report also similarly quoted an investment banker as saying that Adani and Welspun groups, his clients, were preparing a counter bid for Burren.

"The thinking has been firmed up from our clients' side to make a counter bid, which will happen very soon," Darshan Desai, co-founder of London-based investment bank Euromax Capital, said late on Wednesday.

"Our clients are watching the developments very closely and are ready to make a counter bid."

He said the bid was being prepared by a joint venture between Mumbai-based Welspun Group, which has interests in making pipes for the oil and gas industry, and Ahmedabad-based Adani Group, which has interests in natural gas distribution, ports and power.

Welspun Group officials declined comment, while the Adani Group could not be reached.