(Adds detail on deal value)
Aug 2 (Reuters) - Australia's Santos Ltd (STO) said on Monday it hiked its buyout proposal offer to buy Oil Search (OSH) to A$9.40 billion ($6.90 billion) in a deal that would create a top-20 global oil and gas company.
Santos, the country's second-largest independent gas producer, hiked its offer to 0.6275 new Santos shares for each Oil Search share from previous offer of 0.589 new Santos shares.
Based on Santos' closing share price on June 24, the deal values Oil Search at A$4.52 per share, up from earlier value of A$4.25 apiece, which the Papua New Guinea-focused oil and gas producer rejected.
Oil Search in a separate exchange filing said it agreed to open its books to Santos, adding that it intends to recommend its shareholders to vote in favour of the proposal.
($1 = 1.3615 Australian dollars)
