Tuesday, 16 December 2014

Game, set and match for Repsol?

Wow - Talisman Energy has leapt over 45pc in early trade after agreeing to a knockout $8.3 billion offer from Spain's Repsol.

The Spaniards must have been anxious to secure a deal with Talisman as they are paying $8 a share, which is considered by some market participants to be a much higher-than-expected offer price.

Perhaps Repsol was worried that old Albert Frere, the Belgian billionaire, was breathing down their neck? Well, that is what I had heard although it wasn't clear whether Frere's enthusiasm for Talisman was via GDF-Suez - he is vice chairman of the French energy giant - or with some other vehicle.

Bloomberg also reported yesterday afternoon that the Canada Pension Plan Investment Board was weighing an offer for the whole of the Canadian oil group. Here is a link to the Bloomberg piece:    


Still, it looks like it is game, set and match for Repsol. There is, I am told by people who have read the documents, a $270m break fee, Talisman is not allowed to solicit rival bids and Repsol gets 'matching rights' if a rival offer does emerge.    

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