Talisman Energy (TLM) to be Acquired by Repsol for $8.3 Billion

Shares of Talisman Energy Inc. (TLM) were up +2.50 or +48.83 percent to $7.62 per share in this morning's premarket trading, after news that the company had agreed to be taken over by Spanish energy company Repsol SA REP. Talisman Energy shares closed at $5.12, up +0.83 or +19.35 percent in Monday's regular trading session.

Calgary, Alberta based Talisman Energy Inc. is a major independent Canadian oil and gas company.
The company was originally BP Canada Ltd until its name was changed in 1992. Before its renaming, British Petroleum (BP) had already sold its 57 percent stake in the company to the public. Talisman Energy's global operations include North and South America, North Africa, Europe, the Middle East, Indonesia, Australia and the Far East.

Madrid, Spain based Repsol SA was originally the Instituto Nacional de Hidrocarburos until its founding in 1987. Repsol SA is an international energy company with operations worldwide and operates in all areas of oil and gas exploration.

Repsol's $8.00 per share cash bid for Talisman stock is a +36 percent premium from yesterday's close and a +75 percent premium from the stock's 7-day volume weighted average share price. In addition, Repsol bid $25 CAD plus accrued and unpaid dividends for Talisman preferred shares upon shareholder approval.

Chuck Williamson, Chairman of Talisman's Board of Directors stated in the company's press release that, "This deal creates significant and immediate value for Talisman stakeholders," he continued saying "Importantly, the deal underscores Repsol's strong belief in the high quality portfolio that Talisman has worked hard to develop. Repsol is a world-class operator with a solid track record and the financial capability to continue the development of these assets within their international portfolio. I am proud of the company that our employees, past and present, have built and I believe this transaction represents new opportunities for them in Canada and around the world".

Antonio Brufau, Chairman of Repsol, said that, "Our combination with Talisman allows us to align our highly complementary portfolios of upstream assets to create a truly global company well-positioned to grow production and reserves. Talisman has strong operational capability, a highly skilled work force and we look forward to leveraging their expertise as we partner to create a stronger, more profitable and competitive organization."

Calgary will continue to be Talisman's center of operations and become one of Repsol's largest management offices, with Talisman's Canadian assets managed locally from Calgary. The transaction is still subject to Talisman shareholder approval, with the company holding a special meeting in mid February, 2015. Talisman also stated that certain executive officers and directors have already pledged to vote their shares in favor of the deal.

Talisman stock is significantly higher than its $4.29 close last Friday, but still slightly below the $8 takeover price. The deal is still subject to shareholder approval, which includes representatives of billionaire investor, Carl Icahn on Talisman's board.

Other News About Talisman Energy
Oil Search Bids for Talisman's Papua New Guinea Assets
Oil Search Ltd bid $300 million for the Talisman assets.
Talisman, Ecopetrol Report Second Oil Find in Colombia
Company reports positive results for exploratory well in Columbia.

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Published on Dec 16, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2016. Content published with author's permission.

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