THE second largest shareholder in Dragon Oil, the Philipinesowned Belle Corporation, will not accept the 15p sterling per share mandatory offer from Emirates National Oil Company.

The company has been forced to make the mandatory offer to Dragon shareholders after buying the 46 per cent Dragon Oil stake owned by former chairman, Mr Arafin Panigoro. Market sources believe the offer is likely to be rejected by Dragon shareholders, with the 15p offer well below the 20p price of the shares in the market. Emirates National has already indicated that it is happy to maintain Dragon as a public company.

In a comment on the Emirates National involvement, Dragon deputy chairman Dr Oliver Waldron said: "Emirates National Oil Company's acquisition of this shareholding not only releases Dragon from one of the great uncertainties of the past months but also brings a shareholder with the necessary industry and political relationships to assist in our Caspian development."