shares, Smedvig revealed this week.

Bona is the tanker arm of Norwegian ship owner Leif Hoegh while Smedvig owns and operates modern, medium-sized crude oil carriers.

Both companies are Bermuda-registered.

"Smedvig Tankships has been notified by Bona Shipholding that it has acquired 12,051,000 shares of Smedvig Tankships representing 65.06 percent of Smedvig Tankships issued share capital at a price of $8 per share,'' Smedvig said.

Bona intents to make an offer for the remaining Smedvig's shares "as soon as practical,'' Smedvig said.

"Bona's share acquisition and pending offer is both unexpected and unsolicited,'' said Smedvig Tankships chairman Mr. Peter Smedvig.

No shares have been sold to Bona by Mr. Smedvig or other board members, the company said.

"Bona believes that the combination of Bona and Smedvig is capable of yielding better returns for shareholders and has therefore approached Smedvig Tankships' shareholders directly,'' said Bloomberg business news service, citing a prepared statement from Bona.

Since raising more than $100 million from investors in the summer of 1993, Smedvig has lost $32.2 million.

Smedvig shares climbed 23 percent to $7.90 in trading in Oslo yesterday morning.

The offer is equal to Smedvig's net asset value per share at June 30, accounting for options for 519,000 shares exercisable by Mr. Smedvig and his family on a change of control at the company, Bloomberg said.

Smedvig shares are also traded through SEAQ International, London and through an American depositary receipt (ADR) programme in the US.

Smedvig Tankships' board has retained NatWest Securities Ltd. to assist in evaluating all alternatives, the company said.