Indian duo planning Cove offer

Lining up an offer: ONGC and Gail are reportedly planning to bid $2 billion for Cove, beating previous offers by PTT and Shell

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By News Wires

 28 February 2012 05:52 GMT

The overseas investment arm of Indian oil producer Oil & Natural Gas Corporation (ONGC) and gas distribution company Gail India plan to offer $2 billion to purchase UK-based Cove Energy, according to reports.

The planned offer by the two state-run Indian companies, , which was reported by Times of India on Tuesday, will beat a $1.76 billion bid by Thai state-controlled company PTT and Shell's offer worth $1.6 billion earlier this month.

ONGC Videsh and Gail could make their combined bid this week, the newspaper said, citing sources familiar with the matter.

The report claimed the Indian companies could value London-listed Cove at 245 pence-a-share. PTT said on Friday it planned a 220 pence-per-share bid, trumping Shell's offer for Mozambique-focused Cove.

Cove's main asset is an 8.5%…

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