Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Tullow Climbs for Second Day in London on Takeover Speculation

Don't Miss Out —
Follow us on:

Sept. 7 (Bloomberg) -- Tullow Oil Plc rose for a second day in London trading after the Independent reported the U.K. explorer may be a takeover target.

Tullow advanced as much as 3.2 percent to 1,220 pence, adding to yesterday’s 2.3 percent gain, and traded at 1,209 pence as of 12:19 p.m. local time. The shares have dropped 7 percent since the end of last month when the company warned of delays to a development in Uganda.

The Independent newspaper cited traders as saying that a potential bidder was preparing a 20-pound a share offer for Tullow. The Daily Mail said China National Offshore Oil Corp. may be considering a takeover, without citing anyone. An offer of 20 pounds a share would value the company at 17.7 billion pounds ($27 billion).

“The 20-pound share bid rumor circulating yesterday lacks credibility in our view and the timing would appear to be out considering what is going on in Uganda,” Richard Griffith, an analyst at Evolution Securities Ltd., said in a note.

George Cazenove, a spokesman for Tullow, declined to comment. Jiang Yongzhi, a spokesman for Hong Kong-listed Cnooc Ltd. and Lv Bo, a spokesman of its Beijing-based parent China National Offshore Oil Corp., were both unavailable for comment.

Tullow has fallen for the past two weeks after saying that the development of the Lake Albert basin in Uganda will be held up by a dispute over tax between the government and Heritage Oil Plc. Its plans to bring in Cnooc and Total SA as partners in Uganda have been halted until the issue is resolved.

The completion of the Owo sidetrack well in Ghana, which is expected to be announced shortly, may also boost the shares. Tullow said in June that the Owo-1 well discovered a “major new oil field” near the border with Ivory Coast.

“Tullow still has one of the best portfolios in the sector so any dips in the share price should represent opportunities for investors,” Griffith said.

To contact the reporter on this story: Stephen Cunningham at scunningha10@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.