DNO Hits High on RAK Merger News

Shares in DNO were up as much as 9.3% on Monday, their highest level since July, before closing up 2.6% at 6.57.

Bloomberg says the rise is due to a group of minority shareholders reversing opposition to the planned merger with units of RAK, in exchange for meeting certain demands.

The DNO Initiative, representing about 600 shareholders with 5 percent of voting rights, backed the deal in exchange for RAK’s agreement to cut its stake to 30 percent by the end of 2012, Torstein Oeygarden, a spokesman for the group, and RAK Chief Executive Officer Bijan Mossavar-Rahmani, said in Oslo today.

RAK would get 40 percent control through the deal.

“Mossavar-Rahmani is definitely the right man to lead DNO going forward,” Oeygarden said. “Eighty percent of our members voted in favour of the agreement.”

While Petrolia ASA, owned by former DNO Chairman Gerdt Larsen, hasn’t decided if it will vote in favor of the merger, the deal thought likely to go through with the accord approved by DNO Initiative shareholders.

(Sources: Bloomberg, Reuters)

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