Enterprise launches war of words in pounds 1.45bn Lasmo bid

LASMO has forfeited its right to remain an independent company, according to Enterprise Oil, which attacked Lasmo's finances and exploration and performance records, writes Heather Connon.

In its first offer document for its pounds 1.45bn bid for Lasmo, Enterprise says the two companies are a good fit because of their cash-flow profile - Enterprise generates cash while Lasmo needs to invest - their strength in the North Sea and the complementary nature of their assets.

'The logic behind our bid is simple,' said Graham Hearne, Enterprise's chairman and chief executive. 'Combining the assets of the two companies will enable Enterprise to deploy its financial resources, management and technical skills across a broader range of assets, in the process developing Lasmo's assets faster and more effectively than Lasmo on its own could hope to do.'

Lasmo dismissed the document as adding nothing to the 'ill-judged' offer. 'As you would expect, Enterprise's offer document misses the point. Enterprise, not Lasmo, is short of future opportunities. Mr Hearne admits that Enterprise is at the tail-end of its development programme while Lasmo, by contrast, has an attractive portfolio of developments and exploration and appraisal opportunities.'

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