(Adds Repsol declined to comment, background)
July 22 Spanish oil company Repsol SA
is considering a bid for Canada-based Talisman Energy Inc
, Bloomberg reported, citing people familiar
with the matter.
Repsol has identified Talisman as a top target and is
working with JPMorgan Chase & Co, one of the people said.
Repsol declined to comment. "We do not comment on market
speculation," Repsol spokesman Kristian Rix said.
U.S.-listed shares of Talisman Energy, which has a market
cap of $10.20 billion, were up about 14 percent at $11.25 in
extending trading on Tuesday.
Repsol is looking for acquisition opportunities in OECD
countries that offer extra growth capacity, Chief Financial
Officer Miguel Martinez said in May after it exited the
The company raised $6.3 billion from selling bonds given by
Argentina in compensation for the nationalisation of its
majority stake in energy firm YPF and the sale of its
remaining stake in the Argentine company.
Repsol has said it could spend around $10 billion on
acquisitions and has named Norway, Canada and the United States
as its first countries of choice. It hired JP Morgan as an
advisor earlier this year.
Talisman, Canada's No. 5 independent oil and gas producer,
has been restructuring its operations and cutting debt in an
effort to boost its share price to satisfy disgruntled and
activist investors such as Carl Icahn.
Talisman was not immediately available for comment.
(Reporting by Mridhula Raghavan and Narottam Medhora in
BANGALORE and Tracy Rucinski in MADRID; Editing by Mohammad