Sales negotiations between Dana and KNOC stall

Korea National Oil Corp refuses to increase bid for Dana Petroleum

Sales negotiations between British oil explorer Dana Petroleum and Korea National Oil Corp (KNOC) have stalled.

Talks have reached an impasse after Korean explorer KNOC refused to raise its £18 a share offer to takeover Dana, which values the UK firm at around £1.7 million.

Dana said in a statement: "It is very clear to the Dana board that KNOC is unwilling to ascribe any value to Dana's ongoing business development programme."

The two firms began negotiations last month after KNOC raised its original £17 per share offer. A meeting was then held on August 6th in which KNOC officials were asked to sign a non-disclosure agreement.

On August 9th, the Korean company declined to sign the document, leaving Dana "with no way of progressing confidential discussions".

KNOC has previously claimed that it aims to spend $6 billion (£3.8 million) on acquisitions and projects this year in a bid to double its output by 2012.