Hedge funds are quite confident to rake in a predicted amount in profits worth £80m from the Korean state oil firm’s hostile takeover of Dana Petroleum, which seems to hit the jackpot.

Arbitrage shareholders have a control of approximately 30% of the £1.7bn Company, which constitutes a £ 450m bet, that an accord would be taking place.

A lot of short term investors have already shown interest in the deal, which is priced at the 59% premium to Dana’s share price prior the offer. All in all, there are 16 fund managers, who are the representatives of 27% of Dana Petroleum.

On Friday, the Korea National Oil Corporation collected letters of intent from around half of the investors of Dana.

Its advisers yet have not gotten in contact will all the investors on its list as they intend to see a boost in their support for the deal.

It has been learnt that there are three hedge funds searching for a deal, which yet have not declared the official backing that they might be receiving.

One of the fund managers said that it has been one of the most lucrative deals for them in quite some time.

Arbitrage hedge funds have been happily enjoying the summers, like Jabre Capital Partners, which are in chase of stakes relating takeover targets such as Tomkins.