Media reports of Rothschild takeover bid fuels Dana Gas shares

Dana Gas shares surge on media reports that Vallares, the investment vehicle of former BP boss Tony Hayward and billionaire financier Nat Rothschild, see it as a potential takeover target.

Stocks of Dana Gas jumped their most in a month after reports surfaced that the Sharjah-based company is being stalked as a possible takeover target.

Vallares, the investment vehicle backed by Nat Rothschild and ex-BP boss Tony Hayward, is exploring a bid for Dana Gas, according to media reports.

Dana's shares rose 3.39 per cent to 61 fils per share.

The company's stock was the most traded on the Abu Dhabi Securities Exchange, sending the index rising 0.06 per cent to 2,642.97 against a wider sell-off on UAE markets.

The Dubai Financial Market fell 0.51 per cent to 1,499.73, with real estate stocks such as Emaar Properties, Arabtec and Union Properties were among the companies leading the decline.

The sell-off came as traders on international markets speculated on the possibility that the world's largest economy would not break the political gridlock ahead of the August 2 debt ceiling deadline.

Asian stocks fell as US sovereign debt worries caused concerns for international traders. The Nikkei 225 fell 1.45 per cent to 9,901.35 and the Hang Seng Index decreased 1.06 per cent to 22,302.76.

Yesterday, the Dow Jones Industrial Average fell 1.59 per cent to 12,302.55, with the Nasdaq Composite Index off 2.65 per cent at 2,764.79.

One-year credit default swaps on the US, which insure against credit events and are seen as reflecting the likelihood that a debtor will default, also rose 4.36 per cent to hit 80 basis points.