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Eni seeks talks after Burren rejects $3 bln bid

LONDON - Italian oil firm Eni said on Tuesday it had made a 1.48 billion pound ($3 billion) takeover proposal to Britain’s Burren Energy, but that this had been rejected by the London-based oil firm.

Burren shares leapt over 20 percent to as high as 1,140 pence after Eni said it had made a bid approach pitched at 1,050 pence a share, and was still interested in talks.

‘Eni continues to seek limited due diligence from Burren, irrevocable undertakings from key shareholders and a recommendation from the board of Burren prior to making a formal offer to all shareholders,’ Eni said in a statement.

At 0930 GMT, Eni shares were up 0.6 percent at 26.06 euros.

Burren’s business model is split between exploration and the purchase of discovered resources which it then brings onstream as efficiently as possible.

Some industry rivals have criticised the company for being excessively focused on the latter and lacking the exploration expertise of some rivals, explaining part of the reason why its shares have underperformed peers such as Soco International and Tullow Oil.

Eni said in July that it was open to acquisitions after a 9 billion-euro ($12.7 billion) buying spree this year and areas of possible interest included oil sands and refining in central and eastern Europe.