The New Year was ushered with a ramp-up in hostilities between Faroe Petroleum PLC (LON:FPM) and bidder DNO with the former providing what it believes is strong evidence that its shareholders are being low-balled by the Norwegian giant.
With DNO calling for independent review of Faroe’s oil and gas assets, the latter commissioned consultancy Gaffney Cline Associates (CGA) to carry out an audit.
READ: Faroe Petroleum says DNO's £608mln unsolicited takeover offer is "opportunistic" and "substantially" undervalues it
It has come back with a valuation range for Faroe’s wells and exploration projects of £690-£843mln, which equates to 186-225p a share.
That’s a 22-48% premium to the 152p a share tabled by DNO, which values Faroe at £602mln.
"GCA's independent valuation clearly supports our view that DNO's offer substantially undervalues Faroe,” said chairman John Bentley.
DNO, which has built up a 29.9% stake in Faroe, said last week its cash deal was “full and fair, even generous”.
Faroe had until January 20 to weigh in with material new information on the DNO bid.