Lasmo paid pounds 24m to fight off Enterprise

SCHRODERS and Goldman Sachs were paid pounds 6m each, and NatWest pounds 4m, for helping Lasmo fight off the pounds 1.6bn takeover bid from Enterprise earlier this year.

The total fee paid by Lasmo was pounds 24m, which included about pounds 3.5m on lawyers' and accountants' fees, as well as about pounds 800,000 to Brunswick, its public relations firm.

Last week, Enterprise disclosed that it had paid pounds 5.7m to its advisers, of which about pounds 2m was paid to Warburg and pounds 1m each to Robert Fleming and Lehman Brothers, according to estimates by Acquisitions Monthly. The lower total cost reflects the fact that most of its advisers would have been on success-related fees.

Joe Darby, Lasmo chief executive, said that the fees worked out at 1.6 per cent of the bid value, only slightly above the 1.43 per cent average cost of recent defences against hostile bids. He added that he had negotiated charges down by more than 5 per cent.

The bid costs were offset by a pounds 36m profit from the sale of businesses, but the group still made a pounds 22m loss, after tax and preference dividends, in the six months to June, compared with a pounds 22m profit last time. Rudolph Agnew, chairman, said the results had been affected by the low oil price and would 'continue to be under pressure at current oil price levels'.

Mr Darby added that the group remained on course to reduce its costs by 25 per cent, compared with 1993 levels, by 1997. That would be partly because lower-cost fields, such as Kadanwari in Pakistan and Birch in the North Sea, would start producing.

The results were welcomed in the City as evidence that Lasmo is keeping promises made during the bid battle. Colin Smith, oil analyst with Hoare Govett, believes it could start to make profits next year.

----------------------------------------------------------------- LASMO'S DEFENCE: WHERE THE MONEY WENT ----------------------------------------------------------------- Schroders pounds 6m Goldman Sachs pounds 6m NatWest Markets pounds 4m Slaughter & May and Sullivan & Cromwell pounds 2m Ernst & Young and Coopers & Lybrand pounds 1.5m Brunswick pounds 800,000 De Golyer and MacNaughton, other consulting costs pounds 3.7m -----------------------------------------------------------------

View From City Road, page 19

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Jemma Gent: Management Accountant

£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

Day In a Page

War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn
Yvette Cooper: We can't lose the election. There's too much on the line

Yvette Cooper: We can't lose the election. There's too much on the line

The shadow Home Secretary on fighting radical Islam, protecting children, and why anyone in Labour who's thinking beyond May must 'sort themselves out'
A bad week for the Greens: Leader Natalie Bennett's 'car crash' radio interview is followed by Brighton council's failure to set a budget due to infighting

It's not easy being Green

After a bad week in which its leader had a public meltdown and its only city council couldn't agree on a budget vote, what next for the alternative party? It's over to Caroline Lucas to find out
Gorillas nearly missed: BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter

Gorillas nearly missed

BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
Downton Abbey effect sees impoverished Italian nobles inspired to open their doors to paying guests for up to €650 a night

The Downton Abbey effect

Impoverished Italian nobles are opening their doors to paying guests, inspired by the TV drama
China's wild panda numbers have increased by 17% since 2003, new census reveals

China's wild panda numbers on the up

New census reveals 17% since 2003
Barbara Woodward: Britain's first female ambassador to China intends to forge strong links with the growing economic superpower

Our woman in Beijing builds a new relationship

Britain's first female ambassador to China intends to forge strong links with growing economic power
Courage is rare. True humility is even rarer. But the only British soldier to be awarded the Victoria Cross in Afghanistan has both

Courage is rare. True humility is even rarer

Beware of imitations, but the words of the soldier awarded the Victoria Cross were the real thing, says DJ Taylor
Alexander McQueen: The catwalk was a stage for the designer's astonishing and troubling vision

Alexander McQueen's astonishing vision

Ahead of a major retrospective, Alexander Fury talks to the collaborators who helped create the late designer's notorious spectacle
New BBC series savours half a century of food in Britain, from Vesta curries to nouvelle cuisine

Dinner through the decades

A new BBC series challenged Brandon Robshaw and his family to eat their way from the 1950s to the 1990s
Philippa Perry interview: The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course

Philippa Perry interview

The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course
Bill Granger recipes: Our chef recreates the exoticism of the Indonesian stir-fry

Bill Granger's Indonesian stir-fry recipes

Our chef was inspired by the south-east Asian cuisine he encountered as a teenager
Chelsea vs Tottenham: Harry Kane was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope

Harry Kane interview

The striker was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope
The Last Word: For the good of the game: why on earth don’t we leave Fifa?

Michael Calvin's Last Word

For the good of the game: why on earth don’t we leave Fifa?
HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?