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Hess out of Lasmo race
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January 12, 2001: 5:23 p.m. ET
Eni wins bidding war for Britain's 2nd largest oil explorer; Hess drops out
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NEW YORK (CNNfn) - Amerada Hess Corp. confirmed Friday that it is no longer in the running for Lasmo PLC, Britain's second-largest independent oil explorer.
New York-based Amerada Hess's $3.5 billion cash and stock offer for the oil company has expired and the firm has withdrawn from the bidding race, Hess spokesman C.T. Tursi said. In November, Hess made its offer, agreeing to assume $1.6 billion in debt.
On Dec. 21, Italian energy company Eni SpA trumped Hess when it offered $4 billion cash for Lasmo. Eni's offer, 14 percent more than Hess, knocked Hess out of the running.
"We decided [in December] that we would not raise our bid," Tursi said. Hess had about 20 days to counter but time has now run out, he said.
 Eni (E: Research, Estimates), a state-controlled firm, is the world's seventh-largest oil company, with a market value of some $49.1 billion. However, the firm has not managed to pull off any significant deals to help it keep pace with expanding industry leaders such as BP Amoco PLC (BP: Research, Estimates) and Exxon-Mobil Corp. (XOM: Research, Estimates).
Amerada Hess (AHC: Research, Estimates), with a $6.3 billion market cap, is much smaller than Eni but is still on the acquisition hunt. However, candidates would have to meet the firm's financial standards, Tursi said. "We're definitely interested in growing the exploration and production business," he said.
Hess received a $36 million breakup fee.
Lasmo could not be reached for comment but press reports said the firm has agreed to Eni's offer.
Eni gained 63 cents to close at $65.87 Friday, Hess fell by 81 cents to $69.87, Exxon rose $1.06 to $82.81, and BP Amoco jumped 31 cents to $49.25. 
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