Date:05/08/2008 URL: http://www.thehindu.com/2008/08/05/stories/2008080554891600.htm

Business

OVL, Sinopec in race for Imperial Energy of U.K.

Special Correspondent

NEW DELHI: The race for takeover of Russia-focussed British based oil company Imperial Energy has taken an interesting turn with the leading Chinese firm Sinopec learnt to have made a counter offer to that made by the Oil and Natural Gas Corporation Videsh Limited (OVL).

The new development came when OVL had almost finished with the initial negotiations and the talks were in the final stage of decision making. However, with the entry of China Petroleum and Chemical Corp or Sinopec, things have changed and the takeover bid of OVL could come under pressure. China had beaten Indian oil companies in the $10-billion worth of auctions that had taken place in African nations in the last few months. Interestingly, even in Myanmar, China had beaten India for securing gas blocks and laying of gas pipeline. Last week, it was reported that OVL was close to making a $2.5-billion bid for mperial Energy but the entry of the Chinese firm may hot up the price war. Imperial Energy had on July 15 stated that it is in discussions in relation to a possible cash offer for the company at a price of 12.90 pound sterling per share (about $2 billion). OVL officials here refused to comment on the development.