ONGC in Talks to Acquire Imperial Energy
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Thursday, 17 July 2008 |
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Oil and Natural Gas Corp of India has made an approach to acquire
Imperial Energy Corp, listed in London but whose main focus is Russian
oil.
Imperial Energy said that it has been approached by an unnamed
party. Its shares rose 18 percent to $18.10 after the announcement.
UniCredit investment bank, Artyom Konchin, saying that Imperial stock
was valued quite cheap and was expected to be sold at a premium.
ONGC has said it is looking to expand its overseas operations, especially into Russia and other eastern European countries.
While many market commentators point out Russia's recent stance toward
foreign investments in its energy sector, PetrolWorld believes that it
will be in Russia’s interest to entertain such a development, taking
the future energy market of India.
Last November, Imperial declined an offer from the banking arm of
Russia's state-owned gas firm OAO Gazprom, which had been seeking a 25
percent stake. Imperial's shares have been volatile recently as the
company has been seeking funding in the financial markets.
The chairman of ONGC, said in a telephone interview with international
news agency that he is aware that ONGC is in talks about an acquisition
but declined to name the target company
PetrolWorld 150708
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