Dec. 16, 2014, 10:24 AM
- Talisman Energy (TLM +47.2%) explodes higher at the open after Repsol's (OTCQX:REPYY -2.3%) $13B deal to buy the company, but investors in the Spanish company aren't so enamored, sending shares lower.
- The purchase price of $8/share reflects a 75% premium to the seven-day volume weighted average share price - a hefty price that analysts say could force Repsol to consider a sale of its 30% stake in Gas Natural; Repsol chairman Antonio Brufau says his company is not considering such a sale.
- Barclays believes Repsol is getting a business that is free cash flow negative with a problematic North Sea business of questionable value, and that it should have waited longer for what could be a prolonged oil price downturn to make an acquisition.
- But considering that TLM's share price topped $11 last June before plunging to ~$4 last week, 24/7's Paul Ausick says Repsol got a bargain; TLM’s main assets are high quality - in the Marcellus shale play in Pennsylvania and the Eagle Ford shale play in south Texas, as well as off the coasts of Indonesia and Malaysia - and the two companies' combined production capacity will total ~680K boe/day with refining capacity of ~1M bbl/day, vaulting it into the ranks of the 20 largest oil companies in the world.
Dec. 16, 2014, 9:10 AM
Dec. 16, 2014, 2:44 AM
- Talisman Energy (NYSE:TLM) has confirmed that Repsol (OTCQX:REPYY, OTCPK:REPYF) plans to purchase it for $8.3B, or $8 per share in cash.
- Repsol said it would also take on $4.7B of Talisman debt as part of the deal, putting TLM's enterprise value at $13B.
- Talisman Energy's board has approved the offer and recommends that shareholders accept it.
- TLM +20% After hours
Dec. 15, 2014, 12:52 PM
Dec. 15, 2014, 9:51 AM
- Talisman Energy (TLM +21.2%) explodes higher at the open as Repsol (OTCQX:REPYY, OTCPK:REPYF) closes in on a deal and Canada Pension Plan Investment Board reportedly weighs a bid for the Canadian oil and gas explorer.
- Bloomberg reports that Canada Pension is considering making a bid for the whole company after initially considered buying parts of it, perhaps emboldened by a 59% YTD plunge in TLM.
- Expansion is reporting that Repsol’s board is meeting today to approve a TLM bid.
Dec. 15, 2014, 9:12 AM
Dec. 15, 2014, 9:03 AM
- Talisman Energy (NYSE:TLM) +17.2% premarket after confirming it is engaged in discussions with Repsol (OTCQX:REPYY, OTCPK:REPYF) about a potential transaction, and has been approached by other parties.
- TLM closed 16% higher on Friday as details of Reposl's interest leaked out; senior execs reportedly traveled to Calgary to discuss a deal that could be completed before Christmas.
Dec. 12, 2014, 12:46 PM
Dec. 12, 2014, 11:33 AM
- The perception takes hold that a takeover offer for Talisman Energy (TLM +34.5%) is imminent, as Financial Times reports that Repsol (OTCQX:REPYY, OTCPK:REPYF) executives have traveled to Calgary and hope to seal a deal by Christmas.
- The price being negotiated is in a range of $6-$8/share, which would represent a premium of up to 117% to TLM’s C$4.26 closing price yesterday; including debt, the deal would give TLM an enterprise value of $10B-$12B.
Dec. 12, 2014, 9:16 AM
Dec. 12, 2014, 8:00 AM
- Talisman Energy (NYSE:TLM) +10.8% premarket after a report suggests Repsol (OTCPK:REPYF, OTCQX:REPYY) is finalizing a €4B for the company.
- Citing financial sources, the newspaper Expansion says a bid could come in at ~C$6/share.
- Repsol had recently revived takeover talks with TLM after dropping a plan earlier this year to buy the company, according to reports.
Dec. 11, 2014, 11:41 AM
- Talisman Energy’s (TLM +5.4%) stock has plunged 65% this year and is worth just a quarter of its value from 2011, and a Bloomberg report says a company sale at depressed prices may be more worthwhile than waiting out the rout in oil.
- Repsol looked at TLM earlier this year and is sniffing around again after plunging crude prices drove shares below C$5 for the first time in 14 years, and TLM says it has also talked with other parties; Bloomberg speculates suitors could offer C$8/share.
- “We’re getting to a level where a transaction makes more sense from a valuation perspective, from a buyer’s standpoint,” Macquarie's Chris Feltin says.
- Not all shareholders are likely to support a sale with oil at a five-year low: In particular, Carl Icahn - who disclosed a stake in TLM when shares traded at ~C$13 - may argue for holding out for a better price.
Dec. 9, 2014, 9:54 AM
- Talisman Energy (TLM +12.3%) says several parties, not just Repsol, have approached it about various unspecified deals, but that there’s no assurance any agreement will result.
- TLM has frequently been the subject of takeover rumors, and reports yesterday said TLM was again discussing options with Repsol that could include the sale of some assets or the whole company; Repsol reportedly dropped a plan to buy all of TLM in August.
Dec. 9, 2014, 9:09 AM
Dec. 8, 2014, 3:58 PM
- Repsol (OTCPK:REPYF, OTCQX:REPYY) has revived talks with Talisman Energy (TLM -4.8%) in a bid to bolster its presence in North America, according to a Bloomberg report.
- Repsol and TLM are said to be discussing options including the sale of a selection of assets or the whole company.
- Repsol, which is seeking to deploy ~$10B in cash on acquisitions outside its home market, reportedly dropped a plan to buy all of TLM in August.
Dec. 6, 2014, 8:25 AM
- Some investors may be curious to consider battered energy stocks to play a possible recovery; taking the notion that rich folks may know something about where to invest that the rest of us don't, Forbes suggests five energy stocks with large stakes held by billionaire investors and, for good measure, sport current analyst price targets well above where they are currently trading.
- George Soros owns 8% of Penn Virginia (NYSE:PVA); the analyst consensus price target is $16, and shares are currently trading below $5.
- Leon Cooperman owns 9% of SandRidge Energy (NYSE:SD); the analyst consensus target is $5.08, which would be more than double today's price.
- John Paulson owns 9.7% of Oasis Petroleum (NYSE:OAS) and 9.9% of Cobalt Energy (NYSE:CIE); the stocks' respective consensus price target is $44 and $21, both more than twice their current prices.
- Carl Icahn owns nearly 6% of Talisman Energy (NYSE:TLM); the analyst consensus of $9.36 would be more than double current levels.
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