ExxonMobil bids US$2.2b for InterOil, may spark bidding war
[MELBOURNE] ExxonMobil Corp has made a bid worth at least US$2.2 billion for Papua New Guinea-focused InterOil Corp, winning the support of InterOil and topping an offer from Oil Search Ltd, Oil Search said on Monday.
ExxonMobil's move pits it against French giant Total SA, which is backing Oil Search's offer with an agreement to buy part of InterOil's stake in the potentially lucrative Elk-Antelope gas field.
Oil Search has at least until July 21 to submit a revised offer and said it was talking to Total about making a higher bid.
"The parties are in active dialogue and have the flexibility to submit a revised offer either during the three day notice period or after InterOil enters into an Arrangement Agreement with ExxonMobil," Oil Search said.
ExxonMobil has offered US$45 worth of its own shares for each InterOil share plus a payment of US$0.90 per million cubic feet equivalent (mcfe) for resources of more than 6.2 trillion cubic feet at the Elk-Antelope gas field.
That compares with Oil Search's offer of 8.05 of its own shares for every InterOil share, valuing InterOil's shares at US$42.66 on Friday's close, plus US$0.77 per mcfe for resources of more than 6.2 tcfe at Elk-Antelope.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Oil jumps, equities fall as Iran blasts fan Middle East tensions
Gold set for fifth weekly gain as geopolitical risks buoy demand
Oil holds near 3-week low as US sanctions interrupt easing tensions
Seatrium unit ordered to pay US$108 million in arbitration over equipment supply contracts
BP reshapes its leadership team as some executives leave
BHP to decide on future of nickel business by August, trims met coal estimates