Venture rejects Centrica bid

Scottish oil and gas firm Venture Production has rejected a hostile cash bid from UK energy giant Centrica, saying it ÔÇ£substantially undervaluesÔÇØ the business.  Centrica, the UKÔÇÖs biggest energy supplier, has offered 845 pence a share in cash, or about ┬ú900 million, for the outstanding 71 per cent of Venture, having upped its own existing stake on Friday to 29 per cent. In a statement released on Saturday, Venture said: ÔÇ£The Board has unanimously concluded the offer is not in the best interests of shareholders and should be rejected by shareholders.ÔÇØ ┬á Today, two of VentureÔÇÖs leading shareholders each rejected the bid, saying it undervalues the business. ┬á Larry Kinch, one of VentureÔÇÖs founders, who holds 7.4 per cent of the equity, said: ÔÇ£In my view other shareholders should take a longer-term view of their investment in Venture Production or at least demand a price that compensates properly for the long-term value they will give up by accepting a cash offer for the company now."┬á US-based ArcLight Capital partners, which owns 5.4 per cent, also rejected CentricaÔÇÖs proposals. Centrica has said its offer is final unless another bidder comes in. ÔÇ£This transaction will provide the enlarged group with an enhanced position in the North Sea and a diversified asset portfolio across a number of asset and production areas,ÔÇØ said Sam Laidlaw, chief executive officer of Centrica, when the bid was announced.  ÔÇ£CentricaÔÇÖs backing will provide the financial strength required to develop VentureÔÇÖs business fully.ÔÇØ *┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á *