LONDON (ShareCast) - Peel Hunt raised its target price for oil and gas group Cove Energy from 220p to 240p on Wednesday to match the price of the new cash recommended offer by PTTEP.

Thai oil firm PT Exploration and Production Public (PTTEP) has bid 240p a share for Cove, valuing the company at £1,221.4m, a 9.1% premium to the 220p-a-share offer from Royal Dutch Shell which Cove had previously recommended.

“We highlight that today is the last day that Cove shareholders have to accept the current Shell offer; following which time the offer will lapse. This does not preclude Shell from submitting a new offer in response to PTTEP and so there remains the distinct possibility that a further counter-offer could transpire,” said Peel Hunt analyst Wemer Riding.

“The competitive tension surrounding what is a highly-prized strategic gas asset offshore Mozambique is conspiring to create exceptional value for shareholders.”

The broker has maintained its hold recommendation on the stock, given that shares jumped past the target price – by 14:24 in London, Cove was trading 11.42% higher at 249.57p.

BC

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE