Seeking Alpha

Talisman Energy +13% AH as Repsol reportedly considers making a bid

  • Talisman Energy (NYSE:TLM) +13% AH following a Bloomberg report that Repsol (OTCQX:REPYY, OTCPK:REPYF) is exploring a bid for the company as it looks to deploy cash it received for compensation in the loss of its stake in YPF as a way to grow outside of its home Spanish market.
  • Repsol is said to have identified TLM as a top target and is working with JPMorgan Chase as it evaluates the deal.
  • Repsol has said it may spend as much as $10B on deals, and any acquisition probably would be in the U.S., Canada or other developed markets.
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Comments (9)
  • Mark Krieger
    , contributor
    Comments (4663) | Send Message
     
    Repsol can spend up to $10 billion?... TLM already has an enterprise value of $14 b.... that pretty much leaves TLM off the table for them
    22 Jul 2014, 06:59 PM Reply Like
  • IseeIsee
    , contributor
    Comments (7) | Send Message
     
    Maybe $10B only means cash.. could be a cash/stock deal in the works.
    22 Jul 2014, 09:27 PM Reply Like
  • john001
    , contributor
    Comments (903) | Send Message
     
    mark....in response to your $14B figure:

     

    "U.S.-listed shares of Talisman Energy, which has a market cap of $10.20 billion, were up about 14 percent at $11.25 in extending trading on Tuesday."
    22 Jul 2014, 11:44 PM Reply Like
  • john001
    , contributor
    Comments (903) | Send Message
     
    any news that drives the share price up is good news.
    22 Jul 2014, 07:23 PM Reply Like
  • leonixs
    , contributor
    Comments (106) | Send Message
     
    This is great news as I have been buying recently due to falling price.
    22 Jul 2014, 08:15 PM Reply Like
  • yoshhdk
    , contributor
    Comments (185) | Send Message
     
    Does anyone know what the possible buyout price might be? $15 share?
    22 Jul 2014, 10:51 PM Reply Like
  • SCLin
    , contributor
    Comments (2) | Send Message
     
    Lets hope Mr Icahn has input in any transaction, he owns a nice chunk of TLM
    23 Jul 2014, 02:18 AM Reply Like
  • abuite
    , contributor
    Comment (1) | Send Message
     
    Challenge will be to put a value on the North Sea assets with their high abandonment liabilities. These assets have been a drag on TLM shares
    23 Jul 2014, 11:05 AM Reply Like
  • Energex
    , contributor
    Comments (686) | Send Message
     
    North Sea is bleeding cash. The current value is probably negative to zero but it may be higher in 2-3 years due to increased production (cash flow) and reduced liabilities.
    Repsol is looking for a long term investment plus TLM has great assets of interest in USA and Colombia. I think, this transaction, if and when it happens, is a win, win for all.
    23 Jul 2014, 12:55 PM Reply Like
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