Arco Bows Out of Bidding for Irish Oil Firm

Norwegian state oil company Statoil made a formal bid for Irish exploration company Aran Energy on Tuesday and forced Los Angeles-based Atlantic Richfield Co., Aran’s original suitor, to bow out of the takeover race.

Statoil offered 76 Irish pence per share for Aran, valuing the Irish company at $318.8 million. Its offer represents a premium of 11% over Arco’s 68-pence revised offer.

“The board of Arco Irish Holdings has considered Statoil’s offer announced earlier today and has decided that it is not in the interests of Arco stockholders to increase Arco Irish Holdings’ offer,” Arco said in a statement.

Statoil, which entered the fray early Tuesday, said its offer was 78% more than Aran’s closing price of 42.5 pence in Dublin on Aug. 18, the last business day before Arco announced its original 60-pence hostile bid Aug. 21.

Statoil said it would not raise its offer unless a competitor emerged, or Arco revised or raised its offer.