Talisman Energy Inc. says it has been approached by Repsol SA regarding a possible deal and confirms it is in discussions with the Spanish energy company on "various transactions."
The company made the announcement after its shares were halted on the Toronto Stock Exchange pending news.
Talisman added "there is no assurance that any transaction will be agreed" but speculation about a deal sent Talisman shares up 12 percent to $11.84 after trading resumed.
The companies say they are exploring possible transactions.
BNN’s Jameson Berkow says that both companies have said “various deals” are being discussed, which suggests that Repsol is looking at individual asset purchases and not necessarily a run for the company as a whole.
He says Repsol has said that it did want to make acquisitions of up to $10B USD which is in the market of Talisman’s current market cap of $11B.
Talisman has been paring down its far-flung global portfolio, under the leadership of oil patch veteran CEO Hal Kvisle, who took the reins almost two years ago.
The company has assets in 11 countries and is active in nine.
The Calgary-based energy company is now focused on two core regions: the Americas, which includes North American shales and Colombian oilfields, and southeast Asia.
Berkow says Repsol has said it wants to focus on developed markets and that many of Talisman’s holding would not fit that bill.
"Repsol has a growth problem and that doesn’t get resolved by buying Talisman" analyst who covers $TLM just told me
— Jameson Berkow (@crudereporter) July 23, 2014
Kvisle has said selling the company is not his chief aim, but that Talisman would be open to discussions if the right offer comes along.
(With files from BNN's Jameson Berkow)
