U.K. oil and gas company Venture Production PLC (VPC.LN) again urged its shareholders to reject a hostile GBP1.3 billion takeover bid from utility Centrica PLC (CNA.LN) after the European Commission cleared the approach on competition grounds.

Centrica's 845 pence per share bid substantially undervalues the company and its long-term growth prospects, Venture said in a statement.

Centrica has said Venture's defense is based on an overly optimistic assumption of future gas prices and its offer is "a compelling opportunity for Venture shareholders."

Centrica, which already owns 29.9% of Venture, launched its bid for Venture last month. Through the deal, Centrica aims to gain access to Venture's gas reserves to reduce its reliance on volatile wholesale gas markets for supplies.

 
   -By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317; james.herron@dowjones.com
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