Battle for oil explorer intensifies

By Mark Reynolds

A takeover battle for transtasman oil explorer Cultus Petroleum has heated up, with OMV of Austria raising its bid for the company by 10Ac a share.

OMV has also changed a condition of its bid. It now wants just 50.1 per cent of the company before declaring the offer firm. Previously it required 75 per cent acceptance.

OMV is now offering 76Ac (93c) for each share in Cultus. That compares with the company's last sale price of 68Ac a share and is 50 per cent above the Cultus share price before the takeover was announced two months ago.

Sharebroker James Lock, of Craig & Co, said the revised offer was likely to tempt many small investors in the company.

"They have a much better chance of getting in the door with this offer than they did with the old one."

But he said small investors in Cultus would be wise to wait and see whether any further offers were forthcoming.

There is speculation that the revised bid could spark a counter offer from Cultus' main shareholders, Sir Michael Fay and David Richwhite. The New Zealand investment bankers own more than a fifth of Cultus and have been scornful of OMV's move on the company.

The two have said OMV's bid is well below a share price of at least $A1.04, arrived at in an independent valuation by Grant Samuel & Associates.

OMV said it had acceptances from shareholders holding 12 per cent of the company.