Bijan Mossavar-Rahmani, chairman of Norway’s DNO, has made a renewed move in the ongoing bidding contest involving Genel Energy and Capricorn Energy. After initially submitting a £202 million cash offer for Genel at 69 pence per share, industry observers viewed the bid as a strategic calculation anticipating that Genel would be outbid in its £271 million pursuit of Capricorn. DNO holds a 25 percent stake in the Tawke oil field in Kurdistan through Genel, which remains its only operational asset, making the outcome of the Capricorn deal particularly significant.

Following the withdrawal of two other bidders for Capricorn, Genel secured an agreed bid for the company, marking a diversification strategy that the company’s board appeared to favor. The attempt by Mossavar-Rahmani to acquire Capricorn was seen as a secondary plan after his initial approach to Genel was rejected. However, he has now escalated the situation by making a direct offer for Capricorn Energy at a 10 percent premium, valuing the company at $396 million (£292 million) or 384 pence per share.

This latest bid expands DNO’s potential footprint into Egypt, representing a new operating region beyond its existing interests. Despite this, Genel’s share price fell by about 7 percent to 65.25 pence, indicating market concern over the company’s ability to respond effectively to the challenge. Patrick Allman-Ward, Genel’s chairman, has faced what analysts describe as a tough negotiating environment, with some, including Panmure Liberum, expressing skepticism that Genel will present a higher offer for Capricorn.

Mossavar-Rahmani is reportedly considering withdrawing his bid for Genel by the approaching deadline, with the intention of letting the share price decline further, before potentially making another offer in the coming months at a lower valuation. This strategic maneuvering highlights the complex dynamics shaping the future of both Genel and Capricorn and reflects ongoing competition for assets within the oil and gas sector in the region.