DNO International's ex-chairman takes legal action to block RAK Petroleum merger
DNO International (OS:DNO) told investors that Petrolia Invest AS and Erik Frydenbø have filed a request for an injunction with the Oslo District Court, attempting to block its merger with RAK Petroleum's subsidiaries.
DNO, a Norwegian oil firm with operations in Iraq Kurdistan, called the legal action "another frivolous attack on, and attempt to interfere with, the merger by its former chairman Berge Gerdt Larsen, his associates and his advisors".
Petrolia Invest AS is a subsidiary of Petrolia ASA, a company controlled by DNO's former chairman and chief executive Berge Gerdt Larsen.
DNO noted that its former chairman attempted to block the merger before the general meeting on November 1 this year, when the deal was backed by 76.5 percent of its shareholders.
The group has agreed to merge with RAK's subsidiaries that operate in the Middle East - North Africa (MENA) region, which it said would transform it into a "larger, stronger oil and gas company".
"DNO is of the clear view that the request is completely without merit and will vigorously defend against it," said the company.
The merger is currently expected to complete in January 2012.
Last month, Petrolia AS made an offer for 33.3 percent of DNO's shares in exchange for shares in Petrolia. DNO said the offer "can't be taken seriously" and said shares in Petrolia were illiquid and almost worthless.
DNO plans to list on the London Stock Exchange in future.
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