July 16 (Reuters) - Oil producer Dragon Oil's largest shareholder Emirates National Oil Co Ltd (ENOC) said itwould no longer support payment of dividend to shareholders,stepping up the pressure in its bid to take over the company.
ENOC, which owns 54 percent of Dragon Oil, in June offered750 pence per share to buy out minority shareholders. Majorinvestors Baillie Gifford and Setanta Asset Management see thatoffer as inadequate.
ENOC said it expects Dragon Oil, which produces oil fromTurkmenistan, to face operational challenges in meeting itslong-term target production of 100,000 barrels of oil per day. (Reporting By Mamidipudi Soumithri in Bengaluru; Editing byAnupama Dwivedi)