Imperial urges shareholders to accept bid amid postal strike fears

IMPERIAL Energy, the Russia-focused oil explorer, urged investors today to accept a high-priced offer from Indian gas company ONGC over fears a UK postal strike could be looming.

The Leeds-based company also moved to reassure investors that the takeover was not at risk as a result of the collapse of investment bank Lehman Brothers – which owned shares in the company.

Lehman Brothers has a holding of approximately 0.01% of the existing issued ordinary share capital of Imperial Energy.

Imperial Energy said shares owned by the bank would not be tendered for sale.

Indian state-run Oil and Natural Gas Corp had tried to delay its £12.50-a-share offer for the company in the wake of the recent slump in the oil price and is expected to back out of the deal if its condition of 90% acceptance is not met by the December 30 deadline.

Imperial said it strongly recommends shareholders send acceptances by the end of the this week to ensure the Share Offer does not lapse.

Normally, investors withhold their shares until the last moment in case a rival buyer with a higher bid emerges.

The first closing date is December 30 and there is no guarantee this will be extended, especially if ONGC has cooled on the offer.