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To: BigBull who wrote (34686)	1/10/1999 3:17:00 PM
From: davedb	Respond to of 95453

Signs of more things to come. Dave LONDON, Jan 10 (Reuters) - British independent oil and gas exploration company Lasmo said on Sunday it was looking at the possibility of a merger with fellow firm Enterperise Oil ETP.L, but an agreement was not certain. "Lasmo is in discussions with a number of parties on a range of strategic initiatives, one of which is an evaluation of a possible merger with Enterprise Oil," the company said following press reports that the two companies were in merger talks. "All discussions are at an early stage and there is no certainty that any agreement will be reached on any initiative," a company statement said. A further announcement would be made in due course, if appropriate. Britain's Sunday Times said a 2.7 billion pound ($4.43 billion) merger was on the cards, but the two companies, which fought a fierce takeover battle four years ago, needed to overcome a number of obstacles. The Sunday Times, quoting "someone with a knowledge of both groups," said the merger proposal was thought to involve Enterprise Oil paying a moderate premium for Lasmo, the smaller of the two. The Sunday Telegraph, on the other hand, said Enterprise had proposed a 2.3 billion pound merger of equals. REUTERS Rtr 13:16 01-10-99

To: BigBull who wrote (34686)	1/10/1999 3:21:00 PM
From: davedb	Respond to of 95453

Just a bit more Dave releads with Lasmo confirmation, details) LONDON, Jan 10 (Reuters) - British independent oil and gas company LasmoLSMR.L s?????d on Sunday it was in merger talks with fellow British oil explorer Enterprise Oil ETP.L amid a wave of consolidation sweeping the struggling oil sector. Lasmo, which fought off a takeover bid from Enterprise four years ago, stressed talks were at an early stage. "Lasmo is in discussions with a number of parties on a range of strategic initiatives, one of which is an evaluation of a possible merger with Enterprise Oil," the company said in response to press reports of merger talks. "All discussions are at an early stage and there is no certainty that any agreement will be reached on any initiative," the company said. A merger between Lasmo and Enterprise would create Europe's leading independent energy group, with a broad spread of assets in the developed world as well as new markets, including Algeria, said the Sunday Telegraph, which along with the Sunday Times reported the linkup talks. Lasmo shares have lost around 70 percent of their value from their 1998 peak at 305 pence as oil prices fell to 12-year lows and triggered a wave of mergers among industry giants. The shares closed at 94-1/2 pence on Friday. Enterprise shares have fallen from their 1998 high of 605 pence to a low of 283 on Friday. The Sunday Times reported a 2.7 billion pound ($4.43 billion) merger was on the cards, but the two companies needed to overcome a number of obstacles. The paper said the merger proposal was thought to involve Enterprise paying a moderate premium for Lasmo, the smaller ofthe two. The Sunday Telegraph said Enterprise had proposed a 2.3 billion pound merger of equals with Lasmo. It said Enterprise Chairman Graham Hearne approached Lasmo Chief Executive Joe Darby before Christmas following a collapse in both companies'share prices. David Allen, Lasmo's investor relations manager, said on Friday that the weakness of its share price was unjustified and dismissed as "totally misplaced" market speculation that it would make a rights issue. Lasmo, a bid target for Enterprise in 1994, in November announced 200 job cuts at its London headquarters as pat of a plan to cut costs by 30 million pounds. The Sunday Times said the issue of who will take the top jobs could prove difficult to resolve. It said Hearne was thought to be pushing hard to lead any merged entity. Lasmo Chairman Rudolph Agnew could be prepared to take a back seat but an important role would have to be found forDarby, the paper said. The Sunday Telegraph said Darby was expected to fill the chief executive role, while Agnew would retire. Both papers said the other big fear for Lasmo and Enterprise was that a merger proposal could provoke a takeover bid from one of the industry heavyweights, given their knock-down prices. The Sunday Telegraph said Lasmo was only lukewarm on the proposal since it was also talking to at least two continental European energy groups about possible mergers or collaboration. "Some of these talks are thought to be well advanced," saidthe paper. Enterprise, on the other hand, was concerned about being taken over by either BG BG.L, the energy arm of British Gas, or ENI ENI.MI, the Italian energy group, the Sunday Telegraphsaid. REUTERS Rtr 14:10 01-10-99Copyright 1999, Reuters News Service