nexus denies takeover talk after share surge

From the fairfax press


Nexus denies takeover talk after share surge August 3, 2010 - 1:13PM

Shares in oil and gas minnow Nexus Energy have emerged from a trading halt lower than morning highs, after the company scotched rumours it was in takeover talks with Royal Dutch Shell.

Shares in Nexus entered a trading halt on the Australian stock exchange today, amid speculation Royal Dutch Shell may move to take it over.

But Nexus told the stock exchange the rumour was wrong, that it had received no takeover approaches.

Nexus advises that it has not been approached by any party, nor is in discussions with any parties in respect of a takeover of the company, Nexus told the stock market.

Shares in Nexus, already up strongly in recent weeks, surged as high at 39.5 cents, or by nearly 30 per cent, in opening trade before falling back a little.

When Nexus entered the trading halt, shortly before 11am east-coast time, Nexus was trading at 37.5 cents, up 7 cents, or by 23 per cent.

After resuming trade at 12.45pm, the stock fell to 33.5 cents, still up nearly 10 per cent on yesterdays close.

The trading interest in the company came after it was reported that Nexus shareholders were said to have been sounded out about a $480 million takeover bid.

Although it was not stated who was behind the move, industry sources said the prime candidate was Shell, the newspaper reported.

Nexuss market capitalisation is about $292 million.

At the mooted takeover price, shares in the company would sell for about 50 cents.

A Shell spokeswoman refused to comment on speculation the energy giant was eyeing Nexus, which holds interests in gas and oil projects offshore from Victoria and Western Australia.

Shell doesnt comment on market speculation, the spokeswoman said.

AAP