ONGC says conditions unmet in $2.6 bln Imperial bid

By Tom Bergin and Vladimir Soldatkin

LONDON/MOSCOW (Reuters) - Indian oil company ONGC said on Monday it was still awaiting Russia's approval for its $2.6 billion bid for UK-listed oil explorer Imperial Energy, but sources familiar with the situation denied speculation that ONGC wanted to cut the bid price.

Russia's anti-trust authority (FAS) said on Friday it had cleared the 1,250 pence a share offer for Russia-focused Imperial, which ONGC's overseas unit, ONGC Videsh, had announced in August when crude oil fetched around $128 a barrel.

The Economic Times quoted on Monday a cabinet source as saying the Indian government now felt the bid price might be too high.

Imperial's share price fell after the newspaper report and a statement from ONGC Videsh that said full clearance for the deal had not been received from the FAS, despite the anti-trust agency's announcement on Friday.

The share price initially fell as much as 14 percent in early trade and closed down 6.1 percent at 1,000 pence.

ONGC Videsh said on Monday it had received anti-monopoly approval and a spokesman said the company was working towards "quickly" completing the deal.

But ONGC Videsh also said it was still awaiting approval in relation to restrictions on foreign state-controlled firms buying Russian companies.

The head of the Russian agency's foreign investment control department, Svetlana Levchenko, said this was not necessary since, as ONGC Videsh acknowledged, Moscow has deemed Imperial's assets non-strategic.