neglected nexus ups stake in local anzon

Neglected Nexus ups stake in local Anzon
October 04, 2007

NEXUS Energy has increased its stake in Anzon Australia, turning up the heat on the $650 million auction for the oil producer.

The oil and gas explorer said it had snapped up a further 20.29 million shares in Anzon, positioning Nexus as the company's second largest shareholder.

Nexus now has a 16.39 per cent stake in Anzon.

The move by Nexus came after it was omitted from a shortlist of companies granted access to conduct due diligence ahead of a potential takeover offer for Anzon.

It is rumoured those parties include Santos, Origin Energy and Australian Worldwide Exploration.

Nexus said yesterday its major stake in Anzon "enhances" its alternatives with respect to a potential merger and could influence the outcome of the auction process.

Nexus said a potential merger would be an "attractive" option for Anzon and create a premier mid-cap oil and gas company with a "prized production profile".

Anzon holds a 12.4 per cent stake in Nexus after it failed in a hostile takeover attempt for the oil and gas explorer in 2004.

Anzon's largest shareholder, British-listed Anzon Energy, has a 53 per cent holding and has indicated it will endorse the outcome of the auction process.

Anzon produces oil from its Basker and Manta fields offshore from Victoria.