Repsol no longer interested in buying Talisman outright -
Talks between Repsol and Talisman Energy of Calgary, Alberta have hit a rough patch to the extent that the Spanish suitor is no longer interested in pursuing an outright takeover, according to a newswire report.
Reuters on Wednesday cited two unidentified sources familiar with the situation as saying that Repsol, which was previously open to possibly acquiring Talisman in its entirety, is no longer open to doing so. Another source familiar with Repsol's strategy noted in the article that discussions between the two companies have stalled.
According to the article, Talisman announced last month that Repsol had contacted the Canadian company about potentially pursuing transactions. One of the sources said in the article, however, that Repsol is wary about the Canadian company's North Sea holdings in Norway and the UK. These projects, according to the article, have regularly come short of production targets and have hurt Talisman's stock valuation. Since the majority of the North Sea assets are part of a joint venture arrangement with Sinopec in China, a move to exit the area likely would not be accomplished quickly.
According to the article, a spokesperson at Repsol opted not to comment, and Talisman was unable to comment by press time.
Source Newswire Round-up