DNO said on Monday it will not raise its offer for Edinburgh-based oil and gas producer Capricorn Energy, effectively ending the bidding contest and clearing the way for Genel Energy's agreed $436m (£330m) takeover.

The Norwegian group said it maintains a "highly disciplined approach to M&A" and confirmed that its revised $5.214-a-share cash offer is final, leaving it below Genel's superior proposal of $5.74 per share, comprising cash plus a special dividend.

DNO also confirmed that it will not elect to implement its offer by means of a contractual offer.

"DNO continues to rigorously evaluate a pipeline of opportunities, both across the North Sea and the Kurdistan Region of Iraq and other areas in which DNO can successfully deliver its strategy," the company said. "DNO has had positive interactions with the Egyptian authorities in respect of its offer for Capricorn and continues to evaluate Egypt for investment opportunities."

Capricorn Energy shares fell 4.7% to 429p on Monday morning as hopes of a higher counterbid evaporated. Meanwhile, Genel Energy shares rose 1.8% to 63p.

Genel strengthened its position last week after securing support from Capricorn's board and obtaining irrevocable undertakings representing about 39% of Capricorn's share capital. The companies said Egyptian regulatory approval is the main remaining condition to completion

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