(Adds comment from ENOC, background)
July 17 (Reuters) - Elliott Advisors (UK) Ltd became thelatest investor in Dragon Oil Plc to say majorityshareholder Emirates National Oil Co Ltd's (ENOC) takeover offerundervalued the oil producer.
Elliott also said Dragon Oil could increase oil production"meaningfully in excess" of its target of 100,000 barrels of oilper day, a day after ENOC said the company should lower itsnear-term production target.
Two other large minority shareholders, Baillie Gifford andSetanta Asset Management, have also said ENOC's offer of 750pence per share undervalued Dragon Oil and that the company's production could be increased.
"We are surprised that a few financial investors claim toknow more about the assets than the people that operate them ona daily basis," an ENOC spokesman said.
ENOC said on Thursday that it expected Dragon Oil to faceoperational challenges at its Cheleken field in Turkmenistan,its only producing asset, and that the company should lower itsproduction target to 90,000 barrels per day.
Dragon Oil reiterated on Tuesday that it would sustain itsproduction target for at least five years.
Baillie Gifford holds about 7.2 percent in Dragon Oil, whileElliott owns about 3.3 percent and Setanta about 3.1 percent.
Dubai-based ENOC, which owns 54 percent of Dragon Oil, needsacceptance from another 23 percent of the company's shareholdersfor the takeover to go through.
The offer has already received the approval of Dragon Oil'sboard. (Reporting By Mamidipudi Soumithri in Bengaluru; Editing byAnupama Dwivedi)
