Genel Energy has rejected an unsolicited takeover approach from a rival, becoming the latest London-listed firm to be targeted by a foreign firm.

DNO, a Norwegian operator with assets in the Middle East and North Sea, said it had made a 69p-a-share offer for Genel on 28 July, valuing the firm at £202million.

It took the proposal public after Kurdistan-focused Genel rejected the offer, which represents a 38 per cent premium to its last closing price, on 4 August.

It will increase the pressure on the company to engage in takeover discussions and DNO said it ‘remains willing to engage with the board in relation to the proposal.’

DNO, which is in partnership with Genel in the Tawke field in Kurdistan, is also offering a cash-and-shares alternative of equivalent value, which it said would be funded from its own share authorities and would not require approval from its shareholders.

Share authorities allow a company to issue new shares up to a limit already approved by investors.

Shares in Genel rose 22 per cent to 61p wiping out its 17 per cent year-to-date losses.

Genel last month agreed-in-principle a £268million deal to buy Egypt-focused Capricorn Energy, which is also listed in London, although other suitors are circling the firm.

DNO said its offer was not conditional on the outcome of Genel’s interest in Capricorn.

The proposal ‘provides certainty of value irrespective of the outcome of Genel’s offer for Capricorn… which, if unsuccessful, would leave Genel without the diversification it has long sought,’ DNO said.

It said a combination of Genel's business with DNO would create a significantly larger operator in Kurdistan, where ‘continuing security and commercial risks make scale’ essential.

Separately, Israeli oil firm Ratio Petroleum raised its proposal to buy London-listed Pharos Energy, which has major operations in Egypt, trumping a rival bid from Serica Energy.