Dragon Oil shares plummet 10%

SHARES in Dragon Oil dived 10% yesterday after the oil exploration company said talks on a takeover deal had collapsed.

The price fall came just two days after the shares had risen sharply in response to confirmation that a potential strategic investor was eyeing up Dragon and considering a move to acquire a 48% stake in the company.

The investor was not named. Dragon’s majority shareholder, the United Arab Emirates-based Emirates National Oil Corporation (ENOC), had been expected to retain its shareholding, irrespective of the outcome of the negotiations.