Dragon Pulls Back

Dubai’s Dragon Oil this week cancelled plans to bid for Irish independent Petroceltic, as its $800mn provisional offer overvalued the Irish independent after a plunge in oil prices.

London-listed Dragon on 1 December announced it scuppered the deal “in the light of prevailing market conditions.” The Dubai government-controlled company had in October made public its interest in Petroceltic, but never launched a formal bid.

At the time, the Brent price hovered around $90/B. After OPEC decided to maintain its output ceiling at its November meeting, oil prices continued their slide, and Brent dipped to below $68/B on the day the takeover was called off. (CONTINUED - 387 WORDS)