Following media reports in Canada, Coastal Energy has given credence to reports that it is talks with Indonesia's state-owned oil company Pertamina.
In an announcement made today, Coastal Energy said that "it it continuously evaluates strategic alternatives, including but not limited to the potential sale of the company, to maximize shareholder value".
The Financial Post had earlier reported that it had obtained a letter dated October 2012 it which "Pertamina states it is interested in pursuing Coastal Energy on its own and is prepared to pay a 15% premium to Coastal's share price at or around $23 per share or $2.6-bn."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Any proposed deal will likely need the support of Texas oil tycoon Oscar Wyatt Jr, who holds a 27.5% stake in Coastal Energy.
A decorated WWII pilot by the age of 21, he made his fortune trading Iraqi oil. He was jailed for a year in 2008 at the age of 83, for conspiring to make illegal payments for Iraqi oil under the United Nations Oil-for-Food programme.
CM
-
Skipton launches a retirement bond with monthly income – is it any good?The building society has launched a new three-year fixed-rate bond for those aged 66 and over. Can it boost your retirement income?
-
Pensions: 140,000 pensioners to be hit by surprise tax demandTens of thousands of pensioners will be written to over the summer because their pensions have gone above the frozen income tax thresholds
