News: Mosman Oil raises MEO Australia offer for a second time

Mosman Oil & Gas (LON:MSMN) has raised its offer for MEO Australia (ASX:MEO) for a second time.

The bid, which has also been extended until 12 June, is now one Mosman share for every five in MEO.

Its original offer in December was one share for every 20 MEO, but this was subsequently raised in January to one for ten.

Mosman has also lifted many of the conditions of the offer including the requirement for a minimum acceptance of 90%.

In a statement the company said: “The Mosman directors are of the opinion that implementing the above, together with the recent share placement directly answers many of the issues raised by MEO in their target statement, and supplementary target statements.”

In a second supplementary target statement published yesterday, MEO again urged its shareholders to reject the offer and highlighted Mosman’s cash position, share price volatility and the possibility of a share issue before September.

At the start of April, Mosman raised £500,000 through the issue of 10mln shares at 5p each.

Mosman shares were boosted earlier this week by a report on the potential gas and oil resources at the Murchison prospect on New Zealand’s South Island.