Imperial dash to wrap up £1.3bn sell-off
The advisers helping to sell Imperial Energy to a state-owned Indian oil giant are in a last-minute dash to secure enough votes to push the £1.3bn deal through.
Hurried: It is not certain whether Imperial Energy will be able to fulfil its deal with Indian buyers
It is understood that 90% of Imperial's investors have verbally committed to support the takeover by ONGC Videsh.
But these pledges only count if they are officially registered in time for today's 1pm deadline set down by regulators.
The process has been slowed by the City's Christmas shutdown - and there is a risk the takeover won't get the backing it needs. Nine out of ten investors need to rubber stamp the offer for it to succeed. One source said that more than 70% had already officially pledged their support, and Imperial is on course to garner the remainder.
However shareholders tend to vote at the last minute and Imperial's advisers, Royal Bank of Scotland and Merrill Lynch, have been busy pushing shareholders into action.
The takeover is unprecedented on several levels. It was first tabled in the summer when the oil price was over a $120 a barrel. Today, with crude changing hands at less than a third of that figure the £12.50 a share offer looks hugely generous.
However the Indians and their advisers have effectively been railroaded into seeing through a transaction that no longer makes great financial sense.
Their only chance of avoiding an expensive mistake lies with Imperial investors. ONGC is hoping that fewer than 90% back the offer, and it falls at the final hurdle. Shares in the Russian-focused oil explorer rose 10p to 1030p but are at a £2.20 discount to the terms tabled by the Indians, suggesting the deal is finely balanced. However, its failure could see the stock plummet to £5.
Earlier this month The Takeover Panel refused to allow ONGC, an extension period for its bid, ruling it had to post its offer document. ONGC wants to get its hands on Imperial's oil exploration and production assets in Siberia where it has significant interests.
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