IOC, OIL confirm making cash offer for Gulfsands

Indian Oil Corp Ltd. (IOC) and Oil India Ltd. (OIL) confirmed that they had approached Gulfsands Petroleum Plc for a possible all cash offer worth 381 million (US$570mn) to acquire the UK-based company. Gulfsands is an oil producer with interests in Syria, Iraq and the Gulf of Mexico. "In response to recent speculation concerning a possible offer for Gulfsands, Indian Oil and Oil India confirm that they have jointly made an approach regarding a possible all cash offer for Gulfsands," the two companies told the LSE. In a separate notification to the LSE, Gulfsands said that the company had received a preliminary approach on March 18 for a possible offer at 315 pence per share for its entire issued and to-be-issued share capital. The board of Gulfsands has, however, rejected the preliminary offer. "As stated on Mar 19, the board is unanimously of the view that the proposal is wholly inadequate, highly conditional and materially undervalues the company," Gulfsands said. The two state-owned oil companies said they were still eyeing a possible takeover of Gulfsands after their US$570mn takeover bid was rejected as inadequate. Earlier, news reports quoted the two companies as saying that are not planning to raise their bid for Gulfsands.