CORRECT:Venture Shrhldrs With 10% Stake Reject Centrica Offer

U.K. independent Venture Production PLC (VPC.LN) shareholders representing just over 10% of shares said Monday they backed the company's rejection of a hostile bid valuing the company at GBP1.3 billion from U.K. utility Centrica (CNA.LN).

"Given my understanding of Venture, of its management and of its prospects, I believe that Venture's shares have a value of at least GBP10 (1000 pence) a share," said Larry Kinch, Venture founder and holder of around 7.4% of the company.

Friday, Centrica made a final offer of 845 pence a share for the company and also announced the purchase of 3i Group PLC's (III.LN) 5.4% stake in Venture. Centrica now has around 29% of Venture.

Arclight Capital Partners LLC (ARCLCP.XX), which owns a 3.4% stake in Venture, also rejected the Centrica offer saying it "substantially undervalues Venture."

Earlier Monday, Venture said that drilling in the east Irish Sea at the Marram appraisal well and the southern North Sea at the Andrea well showed positive results with more details to come over the next few weeks.

A spokesman for Centrica said the offer was final and put around an 87% premium on where Venture's share price was in January before it became known that Centrica was interested in acquiring the company.

"Our target is to get close to 50% of the company and hopefully others will follow the lead of 3i," the spokesman said.

Venture shares closed down 3% Friday at 785 pence.

Company website: http://www.vpc.co.uk

-By Selina Williams, Dow Jones Newswires +44 207 842 9262; selina.williams@dowjones.com

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