Australia’s Santos rejects $7.2b US investment firm bid
Natural gas firm said it received a proposal from Harbour Energy
SYDNEY
Australian energy giant Santos said Thursday it had knocked back a bid by a US-based investment firm worth almost Aus$9.5 billion (US$7.2 billion), sending its share price soaring.
Santos, a major Australian natural gas company with interests in Papua New Guinea, said it received a proposal from Harbour Energy at Aus$4.55 per share on August 14.
“The board rejected the approach on the basis that the indicative price was inadequate and the sources of funds were uncertain,” Santos said in a statement to the stock market.
“Santos confirms that it is not currently engaged in discussions with, and has not received a current proposal from, Harbour Energy regarding a change of control transaction for Santos.”
Harbour Energy’s chief executive is Linda Cook, a veteran former senior executive of energy giant Royal Dutch Shell.
Shares in Santos closed 13.01 per cent higher to Aus$4.95 in trading in Sydney Thursday.
