Tullow Oil welled up yesterday amid speculation that it could soon be the target of a bidding war.
Sinochem, one of China’s four state oil companies, is said to be looking at the African-focused oil and gas explorer as a way to access the continent’s energy reserves. Meanwhile, Norwegian major Statoil is also said to be considering an approach, as part of its aggressive international expansion plans.
A possible bid price of £15 a share is being discussed, which is an attractive prospect for investors. The company is trading well below its record April 2012 high of £15.34 after a series of disappointing updates.
Tullow was one of yesterday’s best performers, adding 32p to 859p.