London: Two state-run energy companies were behind a rejected £381 million ($570 million) cash approach for London-listed Gulfsands Petroleum.
Tuesday’s joint statement from Indian Oil Corporation and Oil India followed a Reuters report.
Separately, Syria-focused Gulfsands confirmed the bid was pitched at 315 pence per share, and reiterated its rejection of the approach. “The board is unanimously of the view that the proposal is wholly inadequate, highly conditional and materially undervalues the company,” the oil explorer said.
Gulfsands was due to upgrade its reserves estimate before the end of March, which could potentially boost its value.
Analysts at Fox Davies Capital said 315 pence was a good starting point for negotiations, but that the 400 pence the Gulfsands board was looking for could be stretching it too much.
Gulfsands shares, which have jumped 26% since announcing the offer approach on 18 March, were down 1.5% at 325.5 pence at 1104 GMT.