Italian oil and gas group Eni is likely to launch a takeover bid for India's Hindustan Oil Exploration Company, financial sources said on Wednesday.
According to the sources, Eni had indirectly acquired a 27.1% stake in Hindustan Oil with its acquisition of British oil explorer Burren Energy.
At the end of 2007, Eni launched a 2.4 bln euro ($3.504 bln) takeover bid for 100% in Burren.
According to the recent announcement of the stake changes, the takeover bid on Burren was 60.07% subscribed, which brings Eni's stake in Burren up to 84.97%.
Under Indian law, an investor who acquires 15% of a listed company is required to launch a public offer for a further 20% stake.
Hindustan Oil is the first private Indian company to enter the oil and gas exploration and production market.
The company, set up in 1993, is listed on the Mumbai stock exchange.
Hindustan Oil closed fiscal year 2006/2007 with a yearly production of 503,408 barrels of oil and 1,548,788 cubic metres of gas.
Burren bought its stake in Hindustan Oil in 2005.
