tullow take-over talk

STOCKS NEWS EUROPE-Tullow oil up as bid talk resurfaces


Tullow Oil PLC
TLW.L
1,214.00p
+32.00+2.71%6:38pm UTC+1000
Tue Sep 7, 2010 4:21am EDT

Shares in Tullow Oil (TLW.L) rise 2.4 percent, extending the previous session's gains to be among the top performers on Britain's top share index .FTSE, with traders citing speculation in the press on bid rumours from ExxonMobil (XOM.N) and China Offshore Oil Corporation.

The Daily Mail's market report says there is talk that China's biggest offshore oil producer is lining up a bid for 20 pounds a share or 17 billion pounds.

The Financial Times also says a "Chinese energy group" is being touted as a potential buyer, but says the talk is of 13 billion pounds. It also says that ExxonMobil is seen as a predator.

Some market participants are sceptical about either approach.

"Both (rumours are) not credible, if pushed (I'd say) Chinese (is more likely), but such a lucrative pipeline (any bid) would lead quite easily to an auction," a trader says.

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