Indian Oil Corporation and Oil India are not planning to raise their $570 million takeover bid for Gulfsands Petroleum, which the UK-listed explorer rejected as inadequate.

"We feel we've made what is a reasonable offer and now it's up to management to make the next move," said Jonathan Wright, a banker at investment house Seymour Pierce, which is advising the Indian oil companies on the deal.

"There's no other bidder. We don't see any need to increase our offer," he added in a telephone interview with Reuters.

The companies said they were behind a 315 pence per share bid for Gulfsands on Monday.

Gulfsands declined to comment.

Gulfsands shares closed at 326-1/2 pence on Tuesday, above the per-share bid price, suggesting that the Indian companies might boost their bid or that another bidder might emerge.