Sheikh's debt deal for Exxon LNG stake may prompt offers

|About: Exxon Mobil Corporation (XOM)|By:, SA News Editor

A convertible debt deal struck during the 2008 financial crisis led by a billionaire sheikh may be set to trigger a contest for a piece of the $19B natural gas export terminal Exxon Mobil (XOM) is building in Papua New Guinea, Bloomberg reports.

Sheikh Mansour of Abu Dhabi is due to oversee a swap of that debt for a 14.7% stake in Oil Search (OIS), owner of almost a third of the project; the March conversion date is sparking speculation that producers including XOM may also seek the holding.

The sheikh's ownership of the stake could see a speculative premium develop in the OIS share price with a potential acquirer targeting the holding as a cornerstone ahead of a bid, some analysts say.