Genel Energy, a Kurdistan-based company, rejects a takeover bid by Norway's DNO

The Norwegian oil firm DNO announced on Friday that it had submitted a takeover bid of PS202 million ($271.8) for its Kurdistan focused rival Genel Energy at the end of last month, but was rejected.

Genel shares were up 14% at 57 pence in London trading as of 0725 GMT. This wipes out most of their 17% losses for the year.

Oil companies in the Middle East are pursuing mergers and acquisitions at a faster pace. The surge in oil prices that has occurred since the Iran War began has allowed some energy firms to focus on the region.

Separately, on Friday, Israeli oil company Ratio Petroleum?raised?its offer to buy London listed Pharos Energy, which has major operations?in?Egypt. This was in a bid war with Serica Energy.

DNO, in partnership with Genel, bid on the Tawke oil field in Iraq’s Kurdistan Region. It offered 69 pence for each share, an increase of 38% over Genel’s previous close.

Genel refused to comment on DNO’s proposal.

Genel had agreed in principle in July to purchase Egypt-focused Capricorn Energy for $360 million in cash, but other suitors are also circling Capricorn.

DNO said its offer for Genel wasn't conditional on Genel's pursuit of Capricorn Energy.

DNO stated that "(the proposal) provides certainty in value regardless of Genel’s offer for Capricorn... if unsuccessful, Genel would be left without the diversification they have long sought."

Due to the geopolitical tensions that have existed in the region for several years, oil firms in the Kurdish area have faced tough operating conditions. This includes multiple production and export halts.

Genel has a 25% interest in the Tawke production sharing contract operated by DNO.

(source: Reuters)