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IOC Stock Surges on Interoil Takeover Buzz

A Canadian oil firm is reportedly preparing a proposal


Rumors that InterOil Corporation (IOC) may be the target of a acquisition bid by Canada’s Teck Resources (TCK), sent IOC stock surging more than 3% in Friday morning trading.

oil drilling argentina 630
Source: Flickr

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.

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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.

However, Teck might not be the only bidder for IOC, if the company goes into play. Royal Dutch Shell (RDS.A, RDS.B) could also make an offer for IOC.

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.

Article printed from InvestorPlace Media,

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