Jan 02 - Enterprise Positions itself as ENI Considers New Takeover Bid.

Source Press Release
Company ENI S.p.A. 
Tags Strategy - Corporate
Date January 14, 2002

It has been announced that Enterprise Oil is considering pulling out of the Gulf of Mexico and Iran as part of a restructuring as it faces a potential $4.3bn bid from Eni, the Italian oil group. Enterprise also plans a management and strategy shake-up which it will present to investors next month.

Last week, Enterprise said it had rejected an unsolicited approach from an unnamed company, understood to be Eni. Eni's initial approach is believed by some institutional investors to have been as low as 560p-570p a share, valuing the company at £2.7bn, compared with Friday's market price of 628p.

Enterprise has already started strengthening its defences by bringing forward its 2001 results presentation by two weeks to February 5. Sam Laidlaw, Enterprise's new chief executive, will aim to convince shareholders that his group has a viable future as an independent company. Mr Laidlaw is expected to outline an aggressive cost-cutting strategy which will include significant job cuts, aiming to prove to the investment community that there is now going to be a “fresh injection of thinking”.

Enterprise is under pressure to explain why why it rejected Eni's informal offer for the company. Some shareholders have expressed anger that they were not informed about the bid or at the price of the offer. Analysts argue Eni could justify raising its offer to around 700p based on a per-barrel-of-oil price of $6.50. This is in line with other recent deals and values Enterprise at around $5.8bn including debt.

Source: EvaluateEnergy® ©2022 EvaluateEnergy Ltd