Oil producer Dragon Oil’s largest independent investor the asset management firm Baillie Gifford, has said an increased takeover offer from majority owner Emirates National Oil Company (ENOC) “materially undervalued” the company.

Shares in Dublin-listed exploration firm Dragon Oil hit a record high, yesterday, as the company agreed to improved takeover terms tabled by its majority shareholder.

Emirates National Oil Company has a 50% chance of succeeding in its bid to take full control of Irish-listed explorer Dragon Oil, according to UK analysts.

Investors in Dublin-listed exploration firm Dragon Oil are being urged to hold out for an anticipated higher value takeover offer from the company’s majority shareholder, the Emirates National Oil Company (ENOC), than the €5.03bn currently being proposed.

DRAGON Oil, the Irish-listed exploration company, has suffered a 37% drop in first-half profits and a 29% fall in revenue.

Dragon Oil has announced a 37% drop in profits to €105m for the first half of the year.

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

SHARES in Dragon Oil rocketed 14% yesterday after the exploration company confirmed it had received an approach to buy a major shareholding.

Dragon Oil has agreed terms for a new $40 million loan from the Emirates National Oil Company (ENOC), its major shareholder.

Independent oil and gas exploration firm Dragon Oil plc has posted after tax profits of $28.8m (€23.28m) up from $15.5m (€12.53m) in 2002.