Spain’s Repsol SA is planning a bid for Talisman Energy Inc. as it seeks growth outside its home market. Talisman’s energy assets in the US and North Sea are likely the most appealing to Repsol. Talisman confirmed this morning it has been approached by Repsol.
Trading in Talisman Energy stock was halted after shares spiked 12.79% on news of the possible bid. Talisman is valued at $10.2 billion, by yesterday’s closing price. Before today’s surge in trading, the stock was down 15.5% this year.
The shares reopened at 11:12, traders expecting it to move much higher after trading resumes.
Repsol has excess cash from the compensation it received for its loss of stake in Argentina’s YPF SA. It can use that to buy the Calgary, Canada-based Talisman.
Talisman has been previously targeted by billionaire investor Carl Icahn, after it underperformed global energy peers. It now seeks to unwind investments made in the last decade across six continents, and Repsol can take advantage of it.
For investors in Talisman, an offer from Repsol would be a great way to exit.