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UPDATE 1-KNOC to update market on stake in Dana Petroleum

Published 09/23/2010, 11:20 PM
Updated 09/23/2010, 11:24 PM

* KNOC to also issue statement on regulatory approval

* Has already bought 29.5 pct stake in Dana

* Analysts said bid likely to succeed

SEOUL, Sept 24 (Reuters) - State-run Korea National Oil Corp. will brief the market on the total stake it has acquired in Dana Petroleum as it closes in on its hostile $2.6 billion bid for the UK-listed oil and gas explorer.

Last week, KNOC said it bought a 29.5 percent stake in Dana, bringing it a step nearer to a successful acquisition.

In August, KNOC said it had secured non-binding letters of intent to accept its bid from around 49 percent of shareholders.

South Korea has given the oil company a $6.5 billion warchest this year to compete with energy-hungry Asian state firms in a race to secure supplies and to cut Asia's No.4 economy's almost total dependence on imported oil.

The KNOC/Dana deal, if successful, would be the biggest hostile acquisition by a South Korean firm and biggest deal for KNOC, which purchased Canadian group Harvest Energy last October for $1.7 billion.

"Today, we are planning to issue a statement around 3 pm (0600 GMT) regarding the acquisition of Dana," KNOC said in an email statement.

KNOC will also update the market on whether it has received regulatory approval for the takeover.

KNOC has sought to acquire Dana for 1,800 pence a share and Dana's shareholders had until Sept. 23 to accept the offer. Dana shares closed at 1,793 pence on Thursday.

Analysts believe the bid is likely to succeed as KNOC has refused to budge on price and no new bidder has emerged.

Dana has maintained it is worth more than the 1,800 pence a share offer from KNOC citing an independent valuation.

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