Dana Petroleum Hasn't Convinced Holders Better Bid Exists-Sources

By Sarah Kent Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Dana Petroleum PLC's (DNX.LN) chief executive Thomas Cross has so far failed to convince shareholders to hold out for a better offer than the 1,800 pence-a-share approach put forward by Korea National Oil Corp., people familiar with the situation told Dow Jones Newswires Wednesday. Cross has been under pressure from shareholders to accept KNOC's offer, which values the company at GBP1.67 billion, a premium of more than 60% to the closing price before the offer was first reported. On Friday Dana recommended shareholders take no action after receiving KNOC's indicative bid, citing concerns over the Korean company's financing and some "critical preconditions." The conditions included Dana agreeing not to solicit any third-party offers for a four-week period following the start of due diligence and agreeing to allow KNOC to match any competing offer. But Cross's meetings with key investors Tuesday and Wednesday have done nothing to persuade them that the concerns are deal-breakers, or that there is a another feasible deal in the pipeline, the people familiar with the situation said. Dana's top shareholders include Schroders PLC (SDR.LN),which has a 13% stake, Blackrock Inc. (BLK), which has a 5% interest in the company, and Legal & General Group PLC (LGEN.LN) with 4.23%. "I understand that the meetings did not go well and shareholders remain convinced that 1,800 pence-a-share is fair value for the company," said one shareholder, who did not attend the meetings. Dana declined to comment on the meetings. Shares in Dana have jumped since the company received KNOC's initial 1,700 pence-a-share indicative approach June 17. They reached a 52-week high of 1,728 pence after KNOC revised its offer, which remains conditional on the Korean company gaining access to Dana's books and a recommendation from Dana's board. -By Sarah Kent, Dow Jones Newswires; +44 207 842 9376; sarah.kent@dowjones.com (Marietta Cauchi contributed to this article.) (END) Dow Jones Newswires July 28, 2010 13:46 ET (17:46 GMT)