Bloomberg reported that a director at PT Pertamina, a state-owned Indonesian oil producer, said that Pertamina sent a takeover proposal to Coastal Energy Co.’s (TSX:CEN,LSE:CEO) major shareholders. It is possible that the proposal will cause a bidding war.
As quoted in the market news:
Because Coastal Energy operates mostly in the Gulf of Thailand, that nation’s state-controlled PTT Exploration & Production Pcl is among those that may mull an offer, Canadian Imperial Bank of Commerce said.
That’s an opportunity for traders to make money after only 18 of more than 9,300 deals worldwide this year got competing offers, according to data compiled by Bloomberg. CIBC said a buyer could pay as much as C$26.50 a share for Coastal Energy, 38 percent more than its Nov. 5 price, before the stock rose amid takeover speculation. The C$2.4 billion ($2.4 billion) company is alluring because it can boost production even after doubling output last quarter, and its cash flow more than pays for drilling projects, Jennings Capital Inc. said.