Afren boosted by counterbid hopes
Speculation the takeover target will receive a second approach buoyed shares in the explorer
Takeover target Afren drew attention on a day that saw plenty of action for oil shares.
The Africa-focused oil explorer surged in the run-up to Christmas on news that London-listed Nigerian rival Seplat, 11.375p lower at 128.625p, had made a preliminary bid approach. The predator has until January 19 to make a firm offer or withdraw under UK takeover rules, although on Tuesday there was speculation there may be developments well before then.
Shares in Afren surged as much as 1.7p, or 4pc, to a session high of 44.22p as rumours spread through dealing rooms that South Atlantic Petroleum (SAPetro) was eyeing a counterbid.
SAPetro, which was founded by former Nigerian defence minister General Theophilus Danjuma, has already shown an interest in Afren. The group acquired a 7.05pc shareholding in the explorer in the autumn, stakebuilding that at the time also spurred chatter among traders that it could be interested in bidding for Afren. Shares in the takeover target closed 0.73p cheaper at 41.79p.