Maurel & Prom denies potential merger talks


Maurel & Prom denies potential merger talks

PARIS -- Maurel & Prom moved to dispel rumors that the company was in the process of a takeover offer. In a statement, the company said it was guarding shareholders against "rumors of a possible financial transaction" and was not "subject to the elements of valuation recently mentioned by the press."

The Sunday Telegraph had reported that Pertamina is working with Societe Generale on a takeover offer of up to $25.42 a share for the company. Representatives at Pertamina declined to comment on the article and Societe Generale representatives were not available to comment on it.

Oil India said it will continue its talks to buy a stake in Maurel & Prom's Gabon assets even if the company is acquired by Pertamina.

Small in terms of revenue, the group's assets have increasingly attracted substantial interest over the past two years, as oil and gas majors are in a tight race to find new reserves to feed the increasing demand for hydrocarbons. The acquisition is estimated worth around $1.6 bn to $2.1 bn by analysts.

Pertamina group is said to be hungry for fresh oil and gas reserves because Indonesia became a net importer in 2004 following declining production from its maturing fields and growing consumption while India's state-run energy companies have been scouting for oil and gas assets overseas as the nation seeks to secure its energy supplies.

Shell was reported last June to have been interested in buying the Maurel & Prom’s business, which has assets in Africa and Latin America.

Oil India last year said it was in talks to buy a stake in the Gabon assets of Maurel as it seeks to expand its footprint overseas and increase production through acquisitions.

Dow Jones Newswires

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