According to the U.K.’s Daily Mail, Teck has retained Bank of America (BAC) to advise it during the bid. BAC has reportedly obtained the approval of Chandler Corporation, which holds an almost 20% stake in IOC, and is communicating with IOC officials about a “friendly” merger deal.
Teck is said to be willing to pay as much as $85 a share to acquire IOC. That would value IOC, which develops oil and gas resources in Papau New Guinea, at about $4 billion.
Shares of Teck Resources fell about 1% in Friday morning trading.
Over the past year, IOC stock has sank about 25%. On Thursday, IOC stock closed at $55.15 a share.