LONDON, June 21 (Reuters) - British utility Centrica is prepared to go hostile with its 850 pence a share bid for oil and gas group Venture Production, which is holding out for 950 pence, the Independent on Sunday reported.
The Takeover Panel said last week that Centrica had a July 13 "put up or shut up" deadline to make a firm offer after the British Gas owner bought a 22 percent stake in Venture in March and said it was considering making a cash offer for the company.
Centrica said in March it had acquired 33 million shares for 725 pence each in a deal which valued the Aberdeen-based firm at 1.09 billion pounds ($1.78 billion).
The newspaper quoted sources close to the companies as confirming their respective strategies.
It quoted one banker as saying Centrica was committed to a much lower price and might go hostile if Venture sticks to the 950 pence a share demand.
However another source told the paper that Centrica's offer would need to start with a nine to get any traction with the board.
No one at Centrica was immediately available to comment on the report. (Reporting by Kate Holton; Editing by Rupert Winchester)