Venture: Centrica Offer Undervalues Co, Should Be Rejected
August 14 2009 - 9:54AM
Dow Jones News
U.K. utility Centrica PLC's (CNA.LN) 845-pence-a-share offer for
Venture Production PLC (VPC.LN) "substantially undervalues" the
company and should be rejected, Venture said Friday.
Centrica's offer values Venture at GBP1.3 billion.
"My message to shareholders remains clear - do not sell your
shares on the cheap to Centrica," Venture Chairman John Morgan said
in a statement. "Venture is worth substantially more than 845p per
share. Shareholders should not sign any document which Centrica or
its advisers send to them."
Late Thursday, Centrica said it had received acceptances
representing around 10.9% of Venture's current issued share
capital, taking its potential stake in the company up to 40.8%.
Centrica also said it was extending the offer period until 1200
GMT on Aug. 28.
Centrica is aiming to get more than 50% of Venture, which would
give it control of the U.K. independent oil and gas company.
Centrica's natural gas reserve base is dwindling. The utility
wants Venture's gas output to help supply Centrica's 15.5 million
gas and electricity customers in the U.K.
At 1302 GMT, Centrica shares were up 0.5% at 221 pence, mostly
in line with the broader market. Venture shares were up 0.4% at 841
pence.
Company Web site: http://vpc.co.uk
Company Web site: http://www.centrica.co.uk
-By Selina Williams, Dow Jones Newswires +44 207 842 9262;
selina.williams@dowjones.com
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