Lasmo pay-offs could be pounds 1.5m: Enterprise's offer document expected next week

FOUR senior executives of Lasmo, the oil and gas explorer fighting off a pounds 1.45bn bid from its rival, Enterprise Oil, could share more than pounds 1.5m in compensation payments if the defence is unsuccessful.

Joe Darby, the chief executive, will be the biggest beneficiary. He is on a pounds 225,000 salary and a three- year contract, which would give him pounds 675,000 if he lost his job.

Rudolf Agnew, who yesterday became chairman three weeks early as Lasmo boosted its defence effort, will receive pounds 150,000 - equivalent to a year's salary.

Lasmo believes that Mr Agnew's skill in fighting hostile takeovers will be useful in its defence. As chairman of Consolidated Goldfields, he fought off a bid from Minorco - although at the price of an agreed takeover by Hanson.

The remainder of the compensation would be paid to Dick Smernoff, Lasmo's finance director, and John Hogan, chief operating officer.

Although the payments look generous, they are miserly compared with the amounts Lasmo has paid in the past. Mr Darby's predecessor, Chris Greentree, received pounds 2.2m when he was ousted last year - pounds 785,000 for loss of office and pounds 1.4m in other benefits. Lasmo also paid pounds 8.1m to the outgoing directors of Ultramar, which it acquired in 1991.

Enterprise is expected to issue its offer document next week. Lasmo is likely to attack Enterprise's claim that the increased size of the combined company will make it better able to compete in international markets.

'Combined, they will still only be a tenth of the size of an oil major, still too small to attract attention. What matters is how good you are,' an adviser said.

He added that, although Lasmo's exploration profile would give Enterprise more long-term production, the need to replace that would give it a bigger headache later.

Shares in both companies fell yesterday as the market digested the bid. Enterprise dropped 8p to 416p, while Lasmo closed 7.5p lower at 149.5p.

The Takeover Panel also forced Enterprise to state that it had not taken any decision on whether to introduce a cash alternative. On Thursday, it was quoted on a wire service as ruling out a cash offer.

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