Seeking Alpha

InterOil surges 7% AH on takeover speculation

  • InterOil (IOC) +6.9% AH, apparently on speculation from a Daily Mail story that the company is a strong takeover target.
  • Teck Resources (TCK) is said to be lining up a $4B-plus cash offer, with advisor BAML after reaching agreement with IOC’s 19.8% shareholder Chandler Corp. and holding several meetings with IOC management about transacting a friendly deal.
  • Shell (RDS.A, RDS.B) also is mentioned as a potential bidder; it would have plenty of cash after the sale of its Italian retail business to Kuwait Petroleum and if it disposes of its 23% (£3.95B) stake in Australia's Woodside Petroleum.
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Comments (3)
  • john001
    , contributor
    Comments (851) | Send Message
     
    TCK buying IOC? Please tell me this is an early April fools joke.
    20 Feb 2014, 06:59 PM Reply Like
  • Kenny Yang
    , contributor
    Comments (270) | Send Message
     
    Agreed. That article did not cite any sources or the usual "sources familiar with the matter". Plus I don't really trust Daily Mail as source of news, better if it was WSJ, Bloomberg or FT that have higher standard for reporters. G&M, Canada largest business media, didn't flag this at all. Acquiring IOC make no sense at all and it's totally against TCK's energy expansion strategy. Don Lindsay explicitly said in the Nov. Investor Day that they will NOT become a E&P oil company, only involved oil sand mining because its more closer to their truck and shovel business.

     

    That being said, TCK might be acquiring IOC, just NOT the company people have in mind. TCK was interest in buying Iron Ore of Canada from Rio Tinto, also nicknamed IOC. I think the reporter needs to do his/her homework correctly. I would be really surprise if TCK bought InterOil.
    21 Feb 2014, 08:49 AM Reply Like
  • @darracqM
    , contributor
    Comments (29) | Send Message
     
    Interoil management is completely stuck after the share crash in December and cannot buy out IPI (indirect participation interests) in Elk Antelope Fields, which is part of Total deal. So it is no surprise to hear such news. Everything is good to try to lift up share price. Considering the huge short positions, it may work today but will not last.
    On a fundamental basis (Total offer), share price is not far from its yesterday close.
    21 Feb 2014, 09:19 AM Reply Like
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