Since we published our article revealing gossip that Gulf-based RAK Petroleum had made an approach for DNO International, which drills for oil in the Kurdistan region of Northern Iraq, more detail seems to have emerged.
It is understood DNO International has been talking to Bank of America Merrill Lynch about appointing the investment bank as a defence adviser alongside local corporate financiers from Enskilda. However, it remains unclear whether Bank of America Merrill Lynch has been formally appointed.
Meanwhile, traders also claim that Macquarie – the Australian investment house that is trying to move into investment banking advisory services – has been advising Rak Petroleum on its potential bid.
RAK, which is controlled by some wealthy businessmen from the United Arab Emirates (UAE), already owns around 30pc of DNO International. According to market sources, the talk is that RAK recently submitted an offer of 11 Norwegian krona a share for DNO International.
