UPDATE 2-Dragon Oil investors reject Enoc bid

* Baillie Gifford to reject on behalf of holding of 4.2 pct

* Noster Capital to also reject bid

* Dragon's London-listed shares down 1.9 percent

(Adds Noster Capital, updates shares)

LONDON, Nov 11 (Reuters) - The largest minority investor in oil explorer Dragon Oil (DGO.L) said it would reject a takeover bid from controlling shareholder Emirates National Oil Company that values Dragon at $3.9 billion.

Baillie Gifford & Co said in a statement emailed on Wednesday that the 455 pence/share offer "materially understates the fundamental and strategic value" of Turkmenistan-focused Dragon.

"We plan to reject the offer on behalf of our clients, whose holdings under our management currently amount to 4.2 percent of the issued share capital of the company," Richard Sneller, Head of Emerging Markets Equities said.

London-based hedge fund manager Noster Capital, whose funds hold 600,000 shares or around 0.24 percent of the minorities, said it would also reject the bid.

Analysts said the stock was probably worth more than the offer from Dubai state-controlled Enoc, which already owns 52 percent of London and Dublin-listed Dragon.

Dragon's London-listed shares closed down 1.8 percent at 439 pence. (Reporting by Tom Bergin, editing by Will Waterman and Elaine Hardcastle)